Doing_Business_In_MADAGASCAR_2017_English

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2017 EDITION

Madagascar A geostrategic hub for business opportunities

Madagascar | xxxxxx

ACCORD-KNITS K N I T W E A R

F A C T O R Y

M A D A G A S C A R

PROUD TO CONTRIBUTE TO THE SUCCESS OF MALAGASY FOOTBALL

doingbusinessin Madagascar | Edition 2017

© COLAS - Jacques Fernandès

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Madagascar | sommaire

EDITORIAL >>>

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#1- GROWTH CHALLENGES POVERTY Madagascar, a pure gem >>> 8 The rendezvous of the economic sector with national growth >>> 12 The National Development Plan (NDP) >>> 14 Support from international donors >>> 16 Three questions for the IMF representative >>> 18

Publisher: Planet Médias 77 rue du Faubourg Saint Denis – 75010 Paris – France Tel: (+33) 1 80 91 61 94 Fax: (+33) 1 80 91 61 95 Email: contact@doingbusinessin.fr Website: www.doingbusinessin.fr Publication Manager: Dany Laloum Chief Editor: Caroline Roussy Translator: Tilly de Hes Technical Director: Jean-François Orsini Art Director: Jean-Philippe Doutaud Advertisement: Dany Laloum – Eric Laloum – André Gancel Printed in Europe

Economic Development Board of Madagascar (EDBM) Immeuble EDBM, Avenue Gal Gabriel Ramanantsoa Antaninarenina, Antananarivo 101 Madagascar Tel: (+261) 20 22 670 40 / 681 21 Fax: (+261) 20 22 661 05 Email: edbm@edbm.mg Web: www.edbm.mg EDBM Director General: Eric Andriamihaja Robson EDBM Communications Manager: Dominique Randrianarivony EDBM contributors: - Verohanitra Andriambolanoro: Tourism, Energy and Infrastructure Manager - Eva Radavidrason: Light Industry and ICTs Manager - Johary Rajosefa: Services to Investors Manager - Gildas Volaharison: Agribusiness and Mining Manager - Lisivololona Razanajaholy: Private Sector Reform

#2- EDBM: SERVICE IS ITS MISSION The seven best reasons to invest in Madagascar >>> EDBM role and missions >>> The one-stop shop >>>

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#3- IMPROVING THE BUSINESS ENVIRONMENT Structural reforms >>> The rising banking and insurance sectors >>>

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#4- AN INCENTIVIZING, TRANSPARENT ENVIRONMENT Legal and fiscal issues >>>

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#5- PRIORITY SECTORS Agriculture, livestock, fishery and aquaculture >>> A rich sub-soil, a mine of opportunities >>> Priority to renewable energies >>> Soaring ICTs >>> Infrastructure, levers of growth >>> Tourism: the island of treasures >>> Revival of the textile industry >>>

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#6- PRACTICAL INFORMATION ON MADAGASCAR Your first steps in Madagascar >>> Acronyms >>>

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doingbusinessin Madagascar | 2017 Edition

H.E. Hery Rajaonarimampianina, President of the Republic of Madagascar

doingbusinessin Madagascar | 2017 Edition

winning cards.

Its excellent economic potential together with its ideal geographic position in the Indian Ocean makes the country a strategic hub with a future. In 2015 the Government identified six sectors with strong potential: agribusiness, ICT, tourism, renewable energies, infrastructure and mines. Capitalizing these sectors will stimulate growth for sustainable and inclusive benefits.

At the same time, with the support of our technical and financial partners, we will implement a structural reform program designed to fully modernize the business environment. Various laws have been voted in, such as the law on Public-Private Partnerships, and others are in the pipeline such as the law on the Special Economic Zones. The enthusiasm of both national and foreign investors at the Donors and Investors Conference in Paris in December 2016 is clear evidence of the strong confidence and forebodes of encouraging prospects for the economic future of Madagascar.

Our goal is to make Madagascar a modern, prosperous nation that is open to the world. We will achieve this success with you, dear investors!

Our ambitions are your ambitions. We are ready to receive you.

We wish you Tongasoa!

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In a fast changing, global economic situation, Madagascar has many

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GROWTH CHALLENGES POVERTY • Madagascar, a pure gem >>> • The rendezvous of the economic sector with national growth >>> • The National Development Plan (NDP) >>> • Support from international donors >>> • Three questions for the IMF representative >>>

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MADAGASCAR, A PURE GEM Madagascar, a showcase in the Indian Ocean, has many qualities needed for its development yet following the 2009-2013 political crisis there are still many obstacles to overcome.

City of Antananarivo

Madagascar, the world’s fourth largest island, has a land area of some 592,000 km sq located in the Indian Ocean. Its geographic position makes it a strategic crossroad for Africa, Asia and the Middle East. Set on optimizing this location, the Malagasy government that was inaugurated in 2014 began encouraging trade and new investors, and has already launched infrastructure development and renovation projects for the main and secondary roads, harbors and airports to improve access to regions with high potential to generate added value and increase the volume of imports and exports.

Madagascar is a member of several regional and international organisations such as the AU (African Union), COMESA (Common Market for Eastern

and Southern Africa), and SADC (Southern African Development Community), and has signed partnership agreements with China and the BRICS. Its proximity with Mozambique has led to the discovery and exploration of off-shore and on-shore oil veins that are currently being exploited.

Madagascar is ready for its international development through tourism, the export of high added-value products, and numerous opportunities for national and foreign investors. With this in mind, the country has entered into privileged partnership agreements with the European Union and the United States, and has preferential access to their markets.

doingbusinessin Madagascar | 2017 Edition

Madagascar, a pure gem

As for tourism, the charms of Madagascar include its mountain range spanning the center of the country from north to south at average elevations of 1200-1500 meters and attract a very varied public.

The northern region is dominated by the volcanic Tsaratanana Massif that peaks at an elevation of 2876 meters. While the southern region is marked by typical savannah landscape with a semi-arid climate. The Grande Île, still called the “Great Red Island” because of its red lateritic soils, is reputed for its 5000 km coastline, with great stretches of fine sand waiting for beach-loving tourists. The diversity of its topography and climate over an area 1580 km long and an average 400 km wide have favored the development of biodiversity that is unique to the world. In Madagascar some 80% of the species are endemic. To protect this environmental heritage, the government has introduced a national parks policy designed to include ecotourism projects.

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Besides its picture-postcard landscapes, the exceptional geodiversity of its subsoil contains an abundance of natural resources. Present mining activities are focused on ilmenite and cobalt but many projects could be developed, according to the Economic Development Board of Madagascar (EDBM) that is promoting exploitation of industrial and metallic minerals, energy resources, and precious, semi-precious and ornamental stones.

Madagascar also has a strong agricultural sector. Almost half of the 60 million ha of the country’s total land area is suitable for agriculture, and 18 million ha of the arable lands are still available. All these lands are very important to agricultural development. Countries that face rising population figures and decreasing amounts of arable land may soon find themselves in a situation of food dependency.

The Island uses its fertile soils to produce a large variety of spices such as vanilla and cloves, and tropical products such as lychees, coffee and cocoa, all prized for their “premium” quality, and all sold on the international market.

Antananarivo

railroad station

doingbusinessin Madagascar | 2017 Edition

Madagascar, a pure gem

Year-round trade winds, more than 2800 hours a year of sunshine, and 2000 km of fast-flowing rivers give Madagascar remarkable access to renewable energies. The present situation is propitious to the development of clean energy, and promoting clean energy is essential in Madagascar. This is a win-win proposal: clean energy could preserve the environment and meet the country’s domestic needs.

Headlong into the digital revolution, the country has a strong fiber optic system (backbone) that contributes to the enabling environment for information and communication technology (ICT) and for start-ups. The quality of its system, moreover, has already encouraged western mobile telephone companies to outsource their services to the Grande Ile.

|||||||| Population data

Population:

24.24 million inhabitants* 42 hab/km²** 2.8%* 65 years* 65%** 158 out 188 countries**

Population density: Population growth: Life expectancy at birth:

Literacy rate: Human Development Index:

Its very varied landscape, biodiversity, mining resources, agricultural potential, and modernization goals, qualify Madagascar’s to be called a gem. And yet, it is an unpolished gem for many of its qualities are still underexploited.

AN ISLAND ON THE ECONOMIC RUNWAY Long-term structural factors can explain the delay in the country’s economic take-off, and the country’s exclusion from the international community between 2009 and 2013 contributed largely to the deterioriation of its socio-economic fabric.

The legislative and senatorial elections in 2013 and the presidential elections won by Hery Rajaonarimampianina that same year gradually brought the country political stability. The new government is committed to structural reforms (transparency and good governance), and promoting a sustainable and inclusive National Development Plan. This show of determination convinced the international aid and funding agencies such as IMF and the World Bank to revive their relations with the country. In 2014, the United States returned to Madagascar via its African Growth & Opportunity Act (AGOA), which gives eligible countries duty-free access to the U.S. market. That same year, Madagascar negotiated new conditions for its relations with the European Union

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* 2015 World Bank estimate since no census has been made since 1993 **source: World Bank (2015) ***source UNDP (2016)

+ info: www.edbm.mg www.diplomatie.gouv.fr

doingbusinessin Madagascar | 2017 Edition

Interview

CHINA, THE NUMBER ONE TRADE PARTNER The year 2017 marks the 45th anniversary of diplomatic relations between China and Madagascar, an opportunity for the Ambassador of the People’s Republic of China to speak about relations between the two countries.

For the last 45 years, the friendly and mutually beneficial cooperation in the political, economic, healthcare, educational and cultural sectors have been growing ever stronger.

In 2016 China became the leading trade partner for Madagascar with sales between the two countries reaching 1.1 billion US dollars.

To promote Malagasy exports to China and improve the trade balance, the Chinese government decided to allow 97% of the Malagasy exports to enter China tax-free.

Furthermore, the constant increase in China’s investments in Madagascar has created 17,000 jobs. Since 1972, the year the two countries established diplomatic relations, China has sent 624 doctors in 21 medical teams to the country. At present 30 Chinese physicians are working in four hospitals, namely, in Anosiala, Ambovombe, Vatomandry and Sambava.

Chinese language courses in the Confucius Institutes in the universities of Antananarivo and Toamasina are becoming increasingly popular.

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Mrs Xiaorong YANG Ambassador, People’s Republic of China

Since 2005 Malagasy students and business people have been attending seminars and training courses in China every year on subjects ranging from education to healthcare, agriculture, environmental protection, trade, and journalism.

Prospects for the development of bilateral relations between China and Madagascar are very good. At the beginning of 2017, China’s Minister of Foreign Affairs, Mr. Wang Yi, made a friendly visit to Madagascar.

The two sides agreed to work together to build the “Silk Road Economic Belt” and the “21st Century Maritime Silk Road”.

The purpose of these projects is to build up win-win cooperation in five fields: agriculture, fishery, manufacturing, tourism and regional aviation, all the while consolidating three pillars: infrastructure construction, human resources development, and investment and trade facilitation.

This year, the Enawo hurricane devastated parts of the Grande Île and caused heavy human and material losses. At this very difficult time, the Embassy of China reaffirmed its solidarity with the victims by providing 100 thousand yuans RMB in emergency food aid. Further, since southern Madagascar has been suffering from drought for many years, the Chinese are carrying out a project entitled “Working together to help the people of southern Madagascar”. China will offer food to the local people, dig wells and provide assistance to the most vulnerable groups of people, such as women, children and people with disabilities. Recently, the Chinese government sent emergency aid to help Madagascar fight the plague.

China believes that its relations with Madagascar are very important and intends to strengthen its cooperation with Madagascar on the basis of friendship, equality, mutual respect and mutual benefits

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Interview | Ambassador, People’s Republic of China

THE RENDEZVOUS OF THE ECONOMIC SECTOR WITH NATIONAL GROWTH Since the great recession of 2009, economic recovery has been slow. Despite a despondent context, the Malagasy government took some decisive structural decisions.

The first years following the return to constitutional government were marked by weak GDP growth at an average rate of 2.6%. Despite enormous, complex challenges, the Malagasy economy gradually started rising again, and the medium-term prospects are encouraging, according to both the IMF and the World Bank. The GDP grew by 4.2% in 2016, a year the economy was driven by an expanding tertiary sector, public works programs, recovery in the primary sector, favorable weather conditions, and higher prices for vanilla on the world market. Control over inflation and improvement in the external balance thanks to greater inflows of direct foreign investment reinforced economic stability, according to the World Bank. IMF forecasts are equally positive and the upward trend should

be confirmed in 2017 with the GDP growth rate reaching 4.3% and inflation contained at 7.7%.

An IMF mid-term mission led by Marshall Mills from 9 to 22 March 2017 in Antananarivo came to the conclusion that “The authorities have achieved significant progress under the ECF-supported program”.

The Marshall Mills mission also stated that, “All quantitative performance criteria for end-December 2016 were met, supported by prudent monetary policy and improvements in revenue collection that surpassed targets. The government also implemented the measures envisioned in most of the program’s structural benchmarks, although some were delayed.

doingbusinessin Madagascar | 2017 Edition

In recognition of these objectives, the IMF is supporting the Malagasy request for the Extended Credit Facility (ECF). The ECF conditions international aid and investments by foreign countries, and provides favorable grounds for the development of Foreign Direct Investments (FDI) in a situation where international investors seek caution and prudence

|||||||| Economic data

9.74 billion $* 391$* 4.1%* 4.5%* 15.6%** 6.7%* -3.2% of GDP*

GDP (2016): US

GDP per inhab.

(2016):

Growth (in 2016): Forecast for 2017:

Unemployment (ILO definition) in 2017: Inflation (2016) annual average: Overall balance (2016):

*source IMF - **ILOSTAT-OIT

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The report specifies that “In the medium-term, the authorities aim to break Madagascar’s pattern of low growth by scaling up priority spending and accelerating structural reform….The authorities are still making progress in strengthening the legal and institutional framework for enhancing governance and fighting corruption”.

The optimistic conclusions of the IMF mission reflect the commitment and determination of the government to in-depth structural reforms to meet the goals set together with the IMF.

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The rendezvous of the economic sector with national growth

|||||||| Medium-term objectives under the FEC-supported program (2016-2019) Macroeconomic objectives for stronger stability and sustainability • A ccelerate economic growth to 5% a year.

•M aintain single digit inflation, down to 5-6%.

• I mprove international reserves to gradually cover at least 3-1/2 months of imports.

• R aise fiscal revenue to 12% of GDP. • B oost public capital expenditure substantially to 8% of GDP. • A chieve a modest surplus in the budget “anchor” (preliminary balance excluding foreign financed investment).

Structural reform objectives for sustainable and inclusive growth: • P romote inclusive growth inter alia by prioritizing public spending on infrastructure, education and health and by improving the business climate.

• C reate fiscal space, inter alia by mobilizing domestic revenue and sharply reducing the need for transfers to SOEs (State owned enterprises) and pension funds.

• E nhance economic governance and fight corruption inter alia by limiting the use of restricted calls for tender in awarding public contracts, devoting more resources to corruption-control agencies, and strengthening the legal framework.

• I ncrease stability and financial sector development, inter alia by making the central bank more independent, increasing controls of the financial sector, and improving cash flow management.

+ info: www.worldbank.org www.imf.org

doingbusinessin Madagascar | 2017 Edition

THE NATIONAL DEVELOPMENT PLAN (NDP) In 2015, the Malagasy government adopted a National Development Plan (NDP), and its Implementation Plan (PMO) to promote “a modern, prosperous nation”.

Madagascar will be a new economic force where the well-being of the population is durable and its development is supported by its own potentials.

Madagascar will be a country of excellence with high social and environmental quality, where the rule of law, security for all, good governance and social accountability reign and where national communion, national dignity and general interest prevail.

Madagascar will be a new economic force where the well-being of the population is established and where development (…) is supported by its own potentials.

(Excerpt from General State Policy) The State has defined a General State Policy (GSP) that entails the adoption of five strategic axes set out in a framework document called the National Development Plan for 2015-2020. The Plan gravitates around five priority themes:

•G ood governance, rule of law, democracy and national solidarity; •M acroeconomic stability, and development; • I nclusive growth and territorial integrity; • Th e development of human capital and its inclusion in the development process; •O ptimized natural capital and enhanced resilience to disasters.

Throughout this document, the State’s reaction to the scope and complexity of the impending challenges is to reaffirm its commitment to sustainable and inclusive development. Priority issues have been ranked according to urgency, the need for quick action to meet the expectations of the most vulnerable populations, and the long-term structural reforms required for the country’s in-depth change and greater competitiveness. To ensure success for the five priority themes, the State has introduced an implementation plan (PMO, still known as the

doingbusinessin Madagascar | 2017 Edition

These two reference documents provide guidance for the establishment and the step-by-step development of the government’s priority sectors, namely: infrastructure, energy, agribusiness, tourism, mining, and ICTs. Madagascar’s sustainable and inclusive development is based on five strategic pillars and six priority operations

+ info: www.primature.gov.mg

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Paritra Malagasy zary Ohabolana) that describes the methodology, the conditions of implementation, and the operational steps needed to streamline government action.

SUPPORT FROM INTERNATIONAL DONORS The State has a weak budget and tends to depend on international aid.

Andekaleka

electricity substation

The financial capacity of Madagascar is very weak, mainly because of the level of tax revenue, valuated at 10% of GDP which is one of the lowest in the world. Increasing Madagascar’s GDP is a priority for the country’s financial partners, especially for the IMF. The government has promised to broaden the tax base but is finding it very difficult to implement an effective tax policy (larger number of taxpayers but inefficient tax collection). Shortage of domestic resources has caused severe funding gaps which were offset in 2014 by budgetary support from international donors (IMF 94 M$ under the

Rapid Credit Facility, EU 78 M€, World Bank 45 M$, African Development Bank 25 M$) with payments made at end 2014 and early 2015.

Recognition of improvements in macro-economic indicators in 2016 was a sign of brighter times to come. In July 2016, the government concluded an agreement with IMF on the introduction of a 40-month reform program, backed by an Extended Credit Facility (ECF) in the amount of 305 M US$, to be disbursed in segments of 43 M US$ every six months after an IMF review and the approval of payment by the Executive Board. The EB approved

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Support from international donors

the first ECF review on 28 June 2017 and the payment of the second exceptional tranche of 86 M US$, including greater ease of access to 42 M US$, which is in keeping with the Mills mission report. According to the central bank, FDI flows increased by close to 10% during FDI(t1) 2017. Last, the establishment of the IMF program led to the organization of a Donors and Investors Conference (DIC) for Madagascar at UNESCO headquarters in Paris on 1 and 2 December 2016. During the DIC, Madagascar received a 6.4 billion US$ pledge to support its 2017-2020 development projects from the African Development Bank (AfDB), the World Bank, and the United Nations Development Program (UNDP). Further, according to the World Bank, the private sector announced investments of 3.3 billion US$. This was a “historical conference” for Madagascar according to President Hery Rajaonarimampianina who saluted the donors’ pledges as support that suggests hope for a new start

Focus The Rapid Credit Facility provides for accelerated concessional financial aid; conditionality is limited to low income countries with urgent balance of payment problems, unlike the ECF which commits IMF funding over a longer period of time but requires structural reforms.

+ info: www.tresor.economie.gouv.fr/Pays/madagascar/4 www.worldbank.org

doingbusinessin Madagascar | 2017 Edition

JiRaMa water

purification plant

Interview | IMF

Patrick Amir IMAM IMF Resident Representative to Madagascar

Interview A TAX SYSTEM NOT FAR FROM THE BEST How do you think the political and socio-economic situation will develop in Madagascar?

Since the International Monetary Fund does not have a political mandate, we do not have any special assessment of the current political situation in Madagascar. Nonetheless, the political dimension is important considering its potential impact on the implementation of the reforms.

We bear this in mind in our policy discussions with the authorities.

This said, because of our presence in the country and our sharing the daily life of the people, we feel a certain political agitation, since an important election, the presidential election is being held next year.

Looking back at the history of this country, especially its need for political stability in order to maintain the current momentum that began in 2014, we of course must repeat our hope that this election will be conducted in the best possible conditions so that the country can continue trekking on the road to development and poverty reduction.

From an economic standpoint, and despite the shock it has had to face, the country is in a rather favorable position compared to other countries in Sub-Saharan Africa whose economies took a serious downturn when the prices of raw materials plummeted.

This year, while the average growth rate for the Sub-Saharan Africa region is under 3%, Madagascar is expected to grow by about 4.5% thanks, inter alia, to the increase in investments. Inflation, despite the increase due to climatic problems, especially drought and the ENAWO cyclone, has been under control and the forecast is 8% as against 7% last year. Although implementing the State budget has not been free of tension, due to unexpected additional requirements, successful revenue collection, the steady control of expenses and the availability of additional funding have made it possible to maintain a balanced budget without endangering the goals of the reform program that we are supporting through the Extended Credit Facility (ECF). The position of Madagascar abroad has improved as a result of the boost from the high export prices of vanilla and rather strong growth in exports from the free-trade zone. This situation has enabled the country to increase its foreign currency reserves from 2.9 months of imports in 2015 to 3.4 months of imports in 2017.

As concerns the social welfare, a look at the social indicators shows that Madagascar still has many challenges. Examples include the low level of access to education and healthcare services, the high malnutrition rate, and the infant mortality rate. However, with the recent governmental reforms, especially with better prioritization and allocation of public funds, and an increase in the budget allocated to the social welfare sector, we are convinced that the situation will gradually improve, even if it is not at the pace required by the population’s huge amounts of urgent needs.

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Interview | IMF

Funding released through the IMF Extended Credit Facility (ECF) is used to support reform programs devised by the Government to implement its National Development Plan (NDP). The program especially seeks to boost the country’s macroeconomic stability and promote sustainable and inclusive growth.

The priority goals are essentially: (1) boost prospects for inclusive growth through improved access to education, healthcare and social protection combined with better infrastructure and private sector development; (2) increase budgetary leeway through improved revenue generation and spending prioritization and efficiency; (3) reinforce economic governance by strengthening public financial management, particularly the management of state enterprises, and intensifying anti-corruption measures; and (4) strengthen macroeconomic stability by bolstering central bank operations and financial supervision.

The original amount for the program was around 309.2 million dollars, to be disbursed in seven installments of about 44.1 million dollars until July 2019, when the ECF program is scheduled to end.

But at its last meeting in June, the Executive Board approved a request from the Malagasy authorities to increase their level of financial access. This request stemmed from the country’s additional financial needs caused by various natural disasters that hit the Island, including the ENAWO hurricane and the droughts that

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What priority programs are you supporting?

How much funding have you committed?

affected various parts of the Island since the end of last year. Hence, the original amount has been increased by about 42.9 million dollars, which raises the total IMF financial commitment to Madagascar to about 352.1 million dollars for a three-year period starting in July 2016. Up to now, about 131.2 million dollars have been disbursed.

What results and/or objectives do you expect to reach in the medium and long term?

Madagascar has made great strides after many years of crisis. Hence, the country’s medium- and long-term goals should not be very different from its short-term goals.

But because the country is fragile and its institutions weak the post-crisis recovery will take some years. In sum, the main goal is to consolidate results obtained up to now in the priority sectors of the reform program, the ultimate goal being poverty reduction and greater well-being for the population.

At the macroeconomic level, the goal will be to continue present efforts to maintain stability. This means, inter alia, controlling inflation and the tension generated by the expectation of massive inflow of investments and financial aid, and keeping the debt at a sustainable level. With this in mind, it is important for the country to strengthen the capacity of its institutions to manage and prioritize investments.

doingbusinessin Madagascar | 2017 Edition

Interview | IMF

In the current situation of volatile international aid and foreign direct investments, it is essential for the country to continue its efforts to marshal national resources.

The fiscal pressure rate already rose from 9.9% in 2016 to 11.6% in 2017. But reform measures in this field must be continued since not only is the pressure rate still too low but it does not square with the national potential.

Studies have shown that, considering the characteristics of the country, it has a fiscal potential estimated at 17% of its GDP. But for a variety of reasons, such as administrative weaknesses and the proliferation of informal activities, the present results are far from what they could be. To reach this goal, the country needs to work especially on administrative reforms since the fiscal policy, according to all the studies, indicate that Madagascar already has a system that, at the international level, is rather close to “best practices�.

The same can be said about improving public expenditure. Enormous progress has been made in this field with the elimination of subsidies to the oil sector, increased outlay for investments and the social welfare sectors, and with the payment of arrears. This needs to be continued. However, it is important for the State to rapidly settle the question of transfers to public enterprises with deficits.

The authorities need to ensure that the reforms scheduled for these companies be implemented according to schedule. Continuing to support public companies that consume large budgets curtails funding for far more effective uses.

Establishing good economic governance is an important goal that the authorities need to target in the medium and long term.

Further on this subject, special attention has been given to fighting corruption, money laundering and funding for terrorism.

This does not only mean making the legal and regulatory framework stronger but more importantly applying the laws that already exist. Progress has been made in this field, especially as concerns the strengthening of the legal framework, although these laws are still not well enough implemented.

And lastly, the authorities need to stay focused on the stability of the financial system and use the system as a tool to boost economic growth.

This will require the acquisition of tools to ensure the stability of the system together with the right institutional capacity, especially bank supervision. Since financial inclusiveness in the country is still uncommon, the authorities need to develop strategies to increase the coverage of financial services

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EDBM: SERVICE IS ITS MISSION The seven best reasons to invest in Madagascar >>> EDBM role and missions >>> The one-stop shop >>>

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THE SEVEN BEST TO INVEST IN

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otential access to a global P market of more than 600 million consumers in 34 African countries thanks to its strategic position at the entrance to Africa.

Madagascar is a member of SADC (Southern African Development Community), COMESA (Common Market for Eastern and Southern Africa) and IOC (Indian Ocean Commission), which are regional free trade organizations with a potential customer base of over 600 million.

Establishing a business in Madagascar allows investors not only to benefit from the country’s comparative advantages but also gives access to these free-trade zones. In July 2017, Madagascar signed the agreement on the TFTA (Tripartite Free Trade Area) comprising SADC, COMESA and the EAC (East African Community).

This zone affects 57% of the African population.

referential customs P regimes that facilitate access to American and European markets Now that Madagascar is eligible for the African Growth & Opportunities Act (AGOA) with the United States, and has signed the Economic Partnership Agreement (EPA) with the European Union, business companies in Madagascar are entitled to duty free export to these markets. This has encouraged trade between Madagascar and these two entities, and boosted exports to the United States (up 12.8% in 2016) and to the European Union (up 44.6% in 2016)

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umerous opportunities N for investments in high potential sectors Thanks to an audacious sectoral strategy targeting the promotion of sectors with strong comparative advantages, Madagascar now offers a wide range of opportunities in tourism, agri-business, mining, textiles, ICT, renewable energy and infrastructure.

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Cost of competitive factors Madagascar has many competitive advantages such as the cost of labor (50 US $/month), electricity (0.167 US $/kWh in 2016) and water (0.30 US $/m3 in 2016) for industrial use, the leasing price for industrial sites (US $2 /m²/month), the availability of low cost materials and “natural” inputs, ready resource exploitation conditions, e.g. open-pit mines, good farming conditions, infrastructure, etc. Investors can also benefit from the quality-price ratio of the Internet connection which is the second fastest in Africa.

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REASONS MADAGASCAR 5/

A pro-investment legal and fiscal framework Madagascar is implementing major legal, procedural and administrative reforms aimed at facilitating business practices and stimulating local and foreign investments. 2016 saw the implementation of 20+ reforms related to business and commercial law, import-export, enterprise creation, facilitating loans, taxes, and related matters. Investment-oriented legislation was enacted including a law on the Free Zones and Enterprises that exempts free enterprises from tax and VAT exemptions for their imports, and for income taxes for the first 15 years.

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S tate commitment to projects that support infrastructure and renewable energy Besides its own State projects, Madagascar is counting on its Public-Private Partnerships (PPP). Several large-scale infrastructure construction projects are being carried out in the field of telecommunications with the installation of more than 8,000 km of optic fiber, reinforced by 14,000 km of radio relay links. The energy sector is constructing several hydroelectricity plants, including the Volobe Amont Hydroelectric Plant costed at US$500 million, with a capacity of 110MW. The Special Economic Zones (ZES), including one specifically for the textile industry (integrated industrial zone of +100 ha) will encourage the construction of the infrastructure needed to drive growth.

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n island country with A abundant natural resources Madagascar is endowed with abundance and variation in the very promising mining, agricultural, energy and fishery sectors, that can be capitalized and exploited using environmentally-friendly procedures. The harmony and wealth of its biodiversity encourage investments in tourism.

Madagascar has the highest (90%) biodiversity rate in Africa and the highest endemicity rate in the world

VISEO, an emerging group In a country whose potential is a hatching egg, Viseo stands as a productive investor, structuring itself in order to better support those strategic actors of the Malagasy public and private sector that are striving for development. Steered by Moustafa HIRIDJEE, the leader represents the 5th generation of an entrepreneurial French family of Indian origin, established in Madagascar for more than a century.

On the cutting edge of the fruit processing industry, Havamad’s production values the “Made in Madagascar” label on the international market, and is meeting with the organic farming specifications of ECOCERT and is ISO 22000 certified by SGS.

Moustafa HIRIDJEE, CEO of VISEO Group

Involved in the design of conventional and solar Medium / High voltage solutions, and in the supply of consumables to large industries, ElecDis and PRIME also represent global manufacturers of engineering equipment.

From the dealership of cars and utility vehicles, to short and long-term lease of the latter products, IzyRent, Continental Auto and Oceantrade ensure their after-sales service thanks to ISO 9001 certified Service Plus workshops.

Operating for several decades in the field of building materials, DistriBat is supplying major real estate contractors and is referred as a reliable and far-seeing partner.

In addition to the wide product line and the diversity of the sectors in which the Group operates, the endeavoring of associates and producers to actively choose environmental friendly solutions, in order to create sustainable value, is a priority. Through its foundation, Viseo, a committed player in Madagascar in the social field, is focusing on health and children education

E-mail: contact@viseo.mg

EDBM ROLE AND MISSIONS Lake Anosy

The Economic Development Board of Madagascar (EDBM) is a public entity for industry and commerce created in 2006 to improve the business environment, promote local and foreign investment, and assist with the installation of investment projects. EDBM is composed of experts from 11 ministries who, together with consultants, help investors with administrative procedures throughout the life of their projects. Using the EDBM one-stop shop for all administrative procedures, investors can create an enterprise in four business days.

According to the World Bank’s “Doing Business” classification, Madagascar ranked 113rd out of 190 in the 2017 “enterprise creation” indicator, 13 points higher than the previous year.

As the first contact for new investors, the EDBM team offers numerous personalized services to meet the specific requirements of impending projects, and also issues visas, permits, licenses, authorizations and approvals.

Besides its role in accompanying investors, the EDBM team is in charge of promoting investments to attract Foreign Direct Investment (FDI) in the six priority sectors of the National Development Plan, namely, tourism, agribusiness, light industry for export, ICT, infrastructure and mining.

Further, EDBM works with stakeholders from both the public and the private sector by facilitating public-private dialogue. EDBM receives support from technical and financial partners (TFP) such as the World Bank and the African Development Bank.

EDBM has headquarters in Antananarivo, and 8 branch offices, (3 in the Antsirabe, Fort Dauphin and Nosy Be regions and 5 in the former provincial “chief towns”

doingbusinessin Madascar | 2017 Edition

Interview

What growth do you expect in FDI in 2017?

What sectors do the investors prefer?

If the trend observed over the last three years continues, UNCTAD predicts that Madagascar may reach US $630 million in FDI for the year 2017. This exceeds the goal set out in the government’s 2015-2019 National Development Plan. The government has selected six sectors (Agribusiness, Light Industry, Infrastructure, Mining, ICT, and Tourism) where Madagascar has a comparative advantage and a strong growth potential. It is especially noteworthy that the textile industry and ICT are registering high growth rates.

What are the targets of your promotion campaigns? What fields do you want to develop? What arguments do you use to attract new investors?

EDBM carries out promotion campaigns throughout the world (Africa, Asia, Europe, United States, etc.) that are directed to multinational companies working in the sectors mentioned above if they have, (or might in the future have), development strategies in Africa and in developing countries.

For the time being, EDBM promotion campaigns have been focused on agribusiness, textile/apparel, and tourism. Our message, on the one hand, stresses the abundance of natural resources in Madagascar, the lands and the physical conditions that are suitable for various types of crops, our labor skills and dexterity, preferential access to several markets,

What recourse does an investor have in case of dispute? Are you still thinking of joining OHADA (Organization for the Harmonization of Business Law in Africa)?

Investors may have to cope with two types of disputes: disputes against the State which are generally settled by an administrative court or by ICSID (International Centre for Settlement of Investment Disputes), and disputes with their contractors, in other words, between two private entities. Dispute settlement related to a contract between private parties follows whatever is stipulated in the contract between the two parties. If the matter is not covered in the contract, the Madagascar Code de procédure civile gives the contracting parties the choice of submitting the issue to the Centre d’Arbitrage et de Médiation de Madagascar or to the Tribunal du Commerce.

As concerns our joining OHADA, we are analyzing the advantages and drawbacks.

What results do you expect by 2020?

According to the National Development Plan, by 2019 we should have: - an investment rate that exceeds 30% of our GDP, - US$ 420 million in FDI, - a ranking of under 130 on the World Bank’s “Doing Business” scale, - exports to the American market, under AGOA, of more than US$ 500 million

doingbusinessin Madagascar | 2017 Edition

pages

Eric Andriamihaja Robson Director General, EDBM

megadiversity, wildlife and plants, etc.

On the other hand, we are publishing the fact that the country is adopting a wide range of reform measures to make the business environment more and more attractive.

Just as an example of our new legislation, we have the Public-Private Partnership law, the law on e-payments, and we are preparing other laws such as the law on the Special Economic Zones (SEZ) and the law on industrial development. Furthermore, we are changing the tax system, trade regulations and much more. In 2016, 20 laws and procedures were amended.

28 | 29

EDBM role and missions

THE ONE-STOP SHOP The one-stop shop facilitates administrative procedures.

The one-stop shop was established in 2003, and is known as GUIDE, Guichet Unique des Investissements et du Développement des Entreprises, (single window or one-stop shop for business investments and development). In 2007 the EDBM took over all the activities of the GUIDE. Like other investment agencies, EDBM included the “one-stop shop” in its procedures which meant a “single location” that could facilitate its goal to develop more investment projects in Madagascar.

The “one-stop shop” works with 10 ministries, whose representatives are on the EDBM teams, thus offering quality service to future foreign and national investors: welcome and guidance, less red tape, transparent formalities (processing circuit), shorter processing time, one single place to deposit and retrieve administrative documents required to create a business company.

|||||||| The three most promising sectors are NICT, construction and public works, and transport/transit Flourishing Sectors Sector

Companies H1 2016 Companies H1 2017

Growth

Jobs created

Construction & Public works

17

27

59 %

103

NTIC

31

43

39 %

233

Transport & Transit

5

23

360 %

83

Source : EDBM - NB : H1 = First Semester

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Target 2016

Activity Number of regions with one-stop shops

Realization Notes 2016

Target 2020

5

2

Number of new enterprises registered

3,000

4,819

Individual enterprises and companies

5,000

Number of visas and work permits issued

1,000

3,832

629 visa + 3203 work permits

3,000

3

4

Average number of days required to register the enterprises Average number of days to deliver visas and work permits

60

22

Average for the Antananarivo office (headquarters) from Apr to Dec 2016

1

Variable and relatively impossible to determine because everything depends on the availability of the signer at the Ministry of the Interior/PM and the Ministry of Public Works

10

Source : EDBM

The forms can be obtained at EDBM or downloaded from: www.edbm.mg.

The one-stop shop is accountable to the EDBM Investment Services Dept. (Direction des Services aux Investisseurs) whose role is to facilitate the establishment of investment projects by delivering administrative documents needed to create or change a company. This includes work permits; transformable visa; residence visa for investors, expatriate workers and their families; notification of the opening of tourism projects and the related licenses, as well as approval for the Free Zones and Enterprises and activities related to export.

EDBM has 8 regional offices. Two of them (Antsiranana and Toliary) have one-stop shops for enterprise creation.

During the first half of 2017, the one-stop shop registered the creation of 651 enterprises in Antananarivo that included 349 Malagasy, 99 Chinese, 67 French, 25 Indian, 19 Mauritian and 16 Pakistani.

Since 2009, the number of enterprises created has constantly risen, reaching a peak during the first quarter on 2017

|||||||| Number of new enterprises created using the one-stop shop in Antananarivo between the first quarter of 2009 and the first quarter of 2017 350 300 250 200 150 100 50 0

2009

2010

2011

2012

2013

2014

Source : EDBM

doingbusinessin Madagascar | 2017 Edition

2015

2016

2017

pages

|||||||| Objectives for the year 2020

30 | 31

The one-stop shop

#3

32 | 33 pages

IMPROVING THE BUSINESS ENVIRONMENT Structural reforms >>> The rising banking and insurance sectors >>>

doingbusinessin Madagascar | 2017 Edition

34 36

STRUCTURAL REFORMS Improvements in the business environment, as indicators of confidence for the foreign investors, are of high priority for the Malagasy authorities. Structural reforms are being adopted since 2014.

2016/2017 RANKINGS

At the global level : th

167

+2

In 2016, Madagascar was ranked 169th. It is now 167th. This slight improvement shows that the authorities are implementing long-term structural reforms. Judicial reforms designed to improve the legal protection of business were adopted this year.

Five major reform measures have been implemented to improve the delivery of justice for the trade sector, the goal being to accelerate the handling

of trade disputes, improve business management, and promote alternative dispute resolution by: 1) establishing the office of an independent registrar to accelerate the handling of trade disputes; 2) allowing no more than two appeals in order to accelerate the final disposition of trade disputes; 3) encouraging mediation procedures; 4) continuing to computerize the commercial supply chain, and 5) implementing the pre-trial judicial conference

doingbusinessin Madagascar | 2017 Edition

129

Starting a business: th

113

+13

Madagascar has made considerable efforts to launch more businesses and has gained 13 points in the “Doing Business” ranking, from 126th in 2016 to 113th in 2017. This improved ranking was earned by decreasing the number of days needed to start a business (now only four) and easing administrative procedures for companies using the EDBM onestop shop which reduces the number of procedures and the number of documents to provide, lowers costs and automates procedures. The five main reforms were: 1) online entry of the tax identification number (TIN) by the front office of the one-stop shop and elimination of the provisional TIN; 2) computation of the registration costs to be paid and payment of such costs at the front office; 3) reduction in the number of copies of the documents required; 4) publication of the notice of establishment on the EDBM website; v) delivery of the K-bis company information document at the same time as the other documents.

Getting electricity : th

185

+1

As concerns “Getting electricity”, Madagascar’s rank improved from the 186th to the 185th position in 2017. Confirmation of progress made is slow in coming but the restructuring of Jirama, the development of photovoltaic panels, the construction of electric power dams and the more widespread use of renewable energy give Madagascar reason to hope for significant improvement in rank in 2018.

+5

As concerns transborder trade, Madagascar has improved its ranking by 5 points. In 2016 the country was 134th, in 2017, 129th thanks to changes in customs formalities, in particular computerization and improvements in seaport and airport infrastructure. These results can be attributed partly to Madagascar’s return to the US program AGOA in 2014, but Madagascar’s participation in COMESA (Common Market for Eastern and Southern Africa) is also to be credited with this progress. It was in 2014 that President Hery Rajaonarimampianina became president of COMESA, this international organization which functions at the regional level to create a free trade zone among the 19 member states that are exempt from deductibles and quotas and offer potential access to a global market of more than 600 million consumers in 34 African countries The main reforms currently underway Top priorities: - Improvement of legal and judicial framework for business companies; - Legal protection for investments; - Improvement of fiscal efficiency; - Easing of foreign trade; - Fighting against informal business structures: facilitating the formal establishment of businesses.

Main lines of action being: - E asing, accelerating and automating administrative procedures (starting a business, import/export procedures, etc.); - Improving administrative efficiency and the transparency of procedures; - Judicial and tax reforms; - Preparation of main enactments for business (PPP, SEZ, law on industry, law on e-commerce, etc.), and amending of various laws (commercial companies, civil procedures code, microfinancing, etc.).

Medium- and long-term results expected - Automation of administrative procedures to facilitate business; - Introduction of legislative reforms to ensure the security of investments; - Improvement of infrastructure through PPP (transport, roads, seaports, energy, airports, etc.); installation of Special Economic Zones (SEZ); - Improvement of access to markets: more exports, diversification of export products.

doingbusinessin Madagascar | 2017 Edition

pages

Trading across borders : th

34 | 35

Structural reforms

THE RISING BANKING AND INSURANCE SECTORS Since the return to constitutional order, the banks and insurance companies have been flourishing.

The banking sector is composed of 11 private banks: 10 branch offices of French, Mauritian and Africa banks, and 1 Malagasy bank.

The banking sector took an upturn after the depressive years from 2009 to 2013.

The volume of activity in the bank sector grew by 45% between 2013 and 2016, driven be an increase in deposits that amounted to 79.7% of the liabilities, which rate improved by 44% during that same period. During those same years, outstanding loans rose by 49% despite a slower 2016 (8.5%) than the three preceding years (+17% per annum).

The quality of the portfolio improved and the rate

of bad debts fell from 13.8% in 2013 to 9.7% in 2016 and a provisioning rate of 77% against 75% in 2013. By the year 2020 the banking sector should be progressing at the same pace as the economic recovery. The financial situation of the banking sector is expected to remain sound and healthy in the foreseeable future. Furthermore, the legislative and regulatory reforms, especially the adoption of the Digital Currency Act and the revision of the Microfinancing Act, should facilitate financial inclusion, expand the products and services offered, and modernize and further stabilize the sector.

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As for the financial forecasts, the general trend is for operating results to grow across the board, although policies and strategies depend on the bank. Some bank are opening more branch offices to develop their networks, others prefer more targeted growth.

The socio-political situation, with an eye on the elections to be held in 2018, will certainly impact the development of the economy and the aggregates of the banking sector.

THE RISKS DEPARTMENT: A TOOL OF PREVENTION As part of its mission to contribute to the stability and development of the financial system, the BFM (Banky Foiben’i Madagasikara or Central Bank of Madagascar) has set up a modern financial infrastructure that has adopted international good practices in management and risk control connected to borrowers’ indebtedness. With this in mind, the Centrale des Risques Bancaires (Banking Risk Management Unit - CRB) and the Centrale des Risques de la Microfinance (Microfinancing Risk Management Unit - CRM) were merged to form the Centrale des Risques (Risk Management Unit CdR) to satisfy the growing and more sophisticated needs of the primary users.

This merger has contributed to improvement in the quality of data and reduced the asymmetry of information.

This consolidated unit has been operating since September 2016 as the Centrale des Risques that handles information on borrowers’ debts as well as incidents concerning payments by check and payment order. The creditors thus receive complete, unfragmented, up-to-date, reliable information and a user-friendly tool for a rational and accurate assessment of a borrower’s credit rating.

9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0

pages

Billions of Ariary

|||||||| Change in assets, gross customer credit, and customer deposits between 2013 and 2016

36 | 37

The rising banking and insurance sectors

Total assets

Gross credit 2014

2013

Customer deposits

2015

2016

|||||||| Change in annual fluctuations in deposits, credit and assets between 2008 and 2016 (%).

Growth

2008 2009 2010 2011 2012 2013 2014 2015 2016

deposits

21.6

9.5

6.6

11.9

8.1

-1.4

9.5

13.1

credits

25.5

7.0

11.8

4.0

8.0

17.5

17.6

17.1

8.5

assets

19.9

7.6

7.6

12.0

9.2

1.1

10.7

13.5

15.4

17.5

|||||||| Annual development of assets/GDP, deposits/ GDP, and credit/GDP between 2008 and 2016 (%).

25.1

24.8

25.2

25.6

20.9

20.4

20.7

20.8

11.0

11.4

11.6

11.0

11.0

2008

2009

2010

2011

2012

24.2 19.8

Total of assents / GDP

doingbusinessin Madagascar | 2017 Edition

25.5

23.9

24.0

24.6

19.0

18.9

19.2

12.0

12.8

13.5

13.2

2013

2014

2015

2016

Deposit / GDP

20.3

Credits / GDP

The rising banking and insurance sectors

|||||||| Number of loans reported in the system, by type of establishment Entity

Sept-16

Jan-17

June-17

IMF

361,092

370,615

443,100

Banks

574,982

513,214

648,139

179

1,524

1,507

936,253

885,353

1,092,746

Financial establishment Total

All loan companies send a monthly e-statement to the new Centrale des Risque (CdR). The BFM has instructed these companies to consult the CdR before extending any credit: a document confirming this action is kept as justification in the event of a CSBF (Banks and Finances Supervision Commission) audit.

|||||||| Changes in the number of loan companies and number of borrowers Year

Number of loan companies

Number of borrowers

2011

8

234,042

2012

11

265,717

2013

11

327,453

2014

11

386,975

2015 (June)

14

418,748

2016

35

705,818

CREATION OF A CREDIT INFORMATION BUREAU (BIC) As part of financial inclusion and the promotion of an enabling climate for business, BFM set up a credit information bureau (bureau d’information sur le crédit, BIC) under its 2015-2019 strategic action plan. The project started in September 2016. The BIC, which is scheduled to open in 2019, will be interested in non-traditional data such as the borrower’s repayment record in order to develop what is generally called a character guarantee, that could replace collateral.

SAccording to Law no. 2016-004 of 29 July 2016, completed by Law no. 2016-057 of 2 February 2017 relating to the BFM Statutes with emphasis on issuing currency throughout the country.

For this purpose, BFM is the only entity authorized to sort and destroy currency notes unfit for circulation (maintain currency circulation).

Furthermore, in application of the strategic orientation set out in the National Development Plan (NDP), the country adopted structural reforms for growth and poverty reduction. The programs under these reforms are grouped into actions directed to: - encouraging consolidated and sustainable growth; - creating more fiscal space; - improving economic governance; - strengthening the development and stability of the financial sector.

CdR statistics play an important role in handling: •m icro-prudential risks: analysis of changes in and concentration of risks per customer, per sector of activity, per nature, per duration, etc. and the increases in the number of controls of loan companies’ periodic declarations; •m acro-prudential risks: analysis of the changes in the main aggregates on the financial stage, trends in market risk levels, trends in risks in market concentration, changes in creditors’ conditions. doingbusinessin Madagascar | 2017 Edition

To reach these objectives and to implement the new statutes, the BFM has a medium-term strategic and management plan. The strategic plan is directed especially to increasing credibility through responsible communication that publishes reliable, up-to-date information on BFM policies and actions, in a transparent and objective manner, for the economic actors.

Two establishments specialized in micro-financing: Founded in 1991, the purpose of SONAPAR (Société Nationale de Participations) is to promote entrepreneurship by participating in the capital of the SME and the VSE. For the last six years the SOLIDIS guarantee has contributed to the development of SME/SMI in Madagascar. Since 2014 SOLIDIS guarantee increased the amounts of it guaranteed loans to five billion Ariary after signing a guarantee agreement with MICROCRED. This activity is part of a new product called “Garantie Par Lot”. And with the installation of a technological tool called “Calculateur Extranet de Garantie”, banking professionals can make an immediate, cost-free evaluation of the eligibility of the customer’s file, and give an immediate decision on the SOLIDIS guarantee. This technology was developed with the help of the Agence Française de Développement (AFD).

Priority action plans have been drawn up to improve and modernize the framework for the monetary policy and its effectiveness. Reforms have been introduced to improve the functioning of the main financial markets and the operational framework of the monetary policy.

|||||||| Top banks in Madagascar Rank

Company name

T/O in euros

Net balance

No. of Contact employees 800 www.bfvsg.mg

1

BFV - Société Générale

52,537,581

23,373,789

2

Bank of Africa Madagascar

44,700,000

16,000,000

953

3

BNI Madagascar

34,580,905

16,296,191

1,430

4

Banque Malgache de l’Océan Indien

27,527,581

12,534,773

393

www.bmoinet.net

5

Microcred Banque Madagascar

9,501,251

1,282,801

749

www.microcred.mg

6

Access Banque Madagascar

8,700,000

1,900 000

nc

www.accesbanque.mg

7

Mauritius Commercial Bank

7,192,131

2,670,447

nc

www.mcbmadagascar.com

8

Caisse d’Epargne de Madagascar

7,000,000

660,000

438

9

State Bank of Mauritius

2,060,000

9,000

57

www.sbmgroup.mu

BGFI

1,640,000

(-) 1,250,000

55

www.groupebgfibank.com

10

Closing figure as at 31 December 2015 - Source : Ecoaustral

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www.boa.mg www.bni.mg

261 20 22 259 60

pages

In these reform programs, the involvement of the Central Bank of Madagascar (BFM) as an institution essentially focuses on stronger development and financial stability. To this end, new statutes will improve BFM governance, strengthen its accountability, and consolidate its operational and institutional independence. The BFM Executive Committee has tasked the BFM to define and implement the Malagasy monetary and exchange policies, and issue currency notes and coins. It is a State bank, and the bank of banks that serves as a lender of last resort and is responsible for financial stability, the supervision of banks and finances, and supporting the government’s general economy policy.

38 | 39

The rising banking and insurance sectors

The rising banking and insurance sectors

THE INSURANCE SECTOR BETWEEN GROWTH AND DIVERSIFICATION The products sold most often are fire and property damage insurance (e.g. theft, water damage, damage to electrical equipment, hurricanes, etc.), industrial, commercial and office risk insurance and home insurance. The mining companies (QMM and Ambatovy) took out this type of insurance with CEAM (Comité des Entreprises d’Assurances à Madagascar). With the return of constitutional order, the Construction and Public Works sector has grown, automatically leading to an increase in the demand for engineering insurance products (contractors’ all-risk insurance, all-risk assembly/ tests insurance, decennial liability insurance). In the medium- and long-term, insurance companies such as CEAM aim to make the public more familiar with insurance products as a whole. The penetration rate is still under 1% GDP. In the medium term it should rise to about 1.5%. The Malagasy administration is encouraging the insurance companies to develop micro-insurance, and the insurers are already registering a growing demand for financial risk insurance (credit insurance, surety insurance, etc.) |||||||| Top insurance companies in Madagascar T/O in euros

Net balance

35,750,000

2,930,000

387

www.aro.mg www.nyhavana.mg

Rank Company name

No. of Contact employees

1

Assurances et Réassurances Omnibranches

2

Ny Havana

8,700,000

1,115,500

372

3

Allianz Madagascar Assurances

4,500,000

287,000

31

www.allianz-madagascar.com

4

Saham Assurance

3,960,000

530,000

24

www.sahamassurance.com

Closing figure as at 31 December 2015 - Source : Ecoaustral

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TEAM SPIRIT • COMMITMENT • INTEGRITY • PROFESSIONNALISM

BNI MADAGASCAR bolsters national economic recovery the

oldest

BNI MADAGASCAR is still the business bank

BNI MADAGASCAR, the most Malagasy of banks. Figures tell it all. The State owns more than 32% of the shares.

Its history shows that BNI MADAGASCAR is also the bank serving local industry and the branch offices of foreign industrial groups.

Furthermore, it plays a major role in attracting investors and helping local and foreign investors grow and develop.

“The bank by and for the Malagasies” plays a leading role in accompanying the country on its road of development. The BNI MADAGASCAR is a responsible, citizen-oriented bank whose socio-economic actions contribute to the country’s sustainable development.

How the new BNI MADAGASCAR

shareholders

see

BNI MADAGASCAR’s commitment to national development has been confirmed by the new management since the Indian Ocean Financial Holdings (IOFHL) consortium (composed of the CIEL Group and the Axian Group, two major groups of international repute in the Indian Ocean) became the majority shareholder.

Encouraged by its shareholders, BNI MADAGASCAR adopted a strategic development plan based on a comprehensive development model with a new customer-oriented policy and a time-tested position as a business bank by capitalizing its know-how and experience, accepting contingencies, and respecting international regulations.

BNI MADAGASCAR has become the second largest banking network in Madagascar, opening more than one modern branch office per month

The active participation of BNI MADAGASCAR can also be seen in the 22% increase in the credit extended to enterprises from 2015 to 2016. To implement this enterprises support policy, BNI MADAGASCAR has opened two Business Centers (at Antananarivo and Tamatave), and an office at EDBM to serve as a one-stop-shop that allows business companies to complete formalities and accompanies national and international investors. The goal is to meet the specific needs of these business customers.

BNI MADAGASCAR, a universal bank, the second biggest banking network

One of the goals of BNI MADAGASCAR is to increase the use of the banking system through a determined easy-access policy that has included the opening of more than one new neighborhood BNI agency every month since 2015. BNI MADAGASCAR is the second largest banking network in the country with 61 branches as of July 2017.

Mr. Alexandre Mey, CEO of BNI MADAGASCAR addressing the opening session of the International Fair of Madagascar

BNI MADAGASCAR Some facts and figures

2 ISO 9001 certifications on private loans on international operations

2nd Banking network of Madagascar

2 Business centers

61 Modern branch offices

88 Automated teller machines (ATMs)

1022 Co-workers

50,000 Hours of training for human resources (2016)

+127,000 Clients (2016)

90% Private clients (2016)

10%

BNI is also tightening relations with its customers by offering more banking services such as forward exchange transactions and business loans in foreign currency.

Large enterprises, SMEs and Professionals (2016)

Our “easy access banking” products allow us to meet the growing needs of our business and private customers who want round-the-clock service.

Loans (2016)

Our role is to clearly understand the needs of our customer base and offer a range of products and funding programs tailored to their projects.

1403 billion MGA Resources (2016)

878 billion MGA 267 billion MGA Signed commitments (2016)

1682 billion MGA Bank-domiciled imports (2016)

1001 billion MGA Bank-domiciled exports (2016)

1 euro = 3469.12 MGA as at 31 December 2016

BNI MADAGASCAR, Malagasy bank

ALLIANZ

Philippe Lebreton, Director General, Allianz Madagascar

ALLIANZ MADAGASCAR: CONTINUOUS GROWTH AND EFFICIENCY Since its arrival in Madagascar in 2006, Allianz Madagascar has combined its capacity for professionalism, excellence and experience as an international leader in insurance and financial services.

AGF Madagascar was created in 2006. In 2009 it became Allianz Madagascar, a subsidiary of the Allianz group, a world leader in insurance.

The expertise of the Group combined with the experience and professionalism of the local team led to the permanent establishment of Allianz Madagascar in the insurance sector. By striving to meet its clients’ daily expectations and proposing a series of products adapted to their needs, Allianz Madagascar has been able to win their trust and grow exponentially.

In 2014, Allianz Madagascar had 7% of the market.

Sales in the “P&C” sector had a turnover of 8.1 billion Ariary in 2014, 13% higher than the previous year. That same year life insurance had a turnover of 5.2 billion Ariary 9% higher than the previous year.

The company continues to obtain good results. At end 2016, Philippe Lebreton, the CEO Administrator of Allianz Madagascar stated: “Despite the crisis, we have reached a turnover of 17 billion Ariary. We have 10% of the market at present and our turnover is increasing by 20% per year.”

ALLIANZ MADAGASCAR’S MAIN PRODUCTS: • I n the Transport and Aviation sector, Allianz offers a complete range of transport insurance products: cargo by sea, air, and land; civil liability insurance, ship hull insurance; • I n the Construction and Technical Risks sector, Allianz insures all types of risks, from construction to assembling and testing but also risks all throughout the construction period, thanks to its technical expertise of projects and their associated risks. With regard to compensation, specialized teams help Allianz clients and apply the same standards as the Allianz group.

•C oncerning property damage and civil liability, for each enterprise Allianz has tailored offers that include risk prevention. Similarly Allianz offers a wide range of pension and healthcare insurance schemes adapted to individual company needs.

-The individual person being at the heart of the insurance profession, Allianz offers insurance for all sectors: automobile, home, pension. A complete, clear, innovative offer is made to allow people to enjoy worry-free living throughout their life.

• Th e Allianz Africa networks have improved the automobile insurance by introducing a guarantee of “advance on claims” or “first risk” guarantees.

Similarly in the life insurance sector, to react to funding needs for studies, Allianz Africa is offering an “education allocation” that provides for an education savings plan and, in case of death, provides funding to cover outstanding tuition fees.

Allianz Madagascar furthermore is greatly involved in healthcare and education that are central to the country’s economic development.

doingbusinessin Madagascar | 2017 Edition

Allianz Madagascar Assurances

Conception - rĂŠalisation : Pastelle - Alfortville

Allianz is with you from A to Z

The strength of an international leader in insurance and financial services, the advantage of being near you.

Allianz Africa has been on the African continent for a century, and now has 15 branch offices and 450 co-workers at your service. We provide support for your international programs in some 30 countries in Madagascar and the rest of Africa. www.allianz-africa.com

Allianz Madagascar Assurances

#4

44 | 45 pages

AN INCENTIVIZING, TRANSPARENT ENVIRONMENT 46

Legal and fiscal issues >>>

doingbusinessin Madagascar | 2017 Edition

LEGAL AND FISCAL ISSUES

STATE GUARANTEES FOR FOREIGN INVESTMENTS According to the Economic Development Board of Madagascar (EDBM), 43.8% of the newly created enterprises in 2015 were foreign enterprises.

For several years the State has been striving to establish a business environment that is enabling, practical and transparent for all lines of investment in Madagascar by securing capital and investment, respecting individual and collective ownership rights, ensuring equal treatment for national and foreign investors throughout the national territory and granting the right to unimpeded functioning.

Many laws have been adopted to strengthen investment guarantees, such as: - f reedom to invest without prior investment approval; - f reedom to transfer injected capital and revenue therefrom; - r espect for individual and collective property rights; - e quality of treatment for investors; - f reedom to operate the enterprise according to its statutory rules and regulations; - f reedom to manage personnel, compliant with the Code du Travail (Labor Code) and the Code de PrĂŠvoyance Sociale (Social Welfare Code).

The Malagasy state has also agreed to create and maintain a favorable investment environment by maintaining a simple, equitable, growth-oriented taxation system for investors.

doingbusinessin Madagascar | 2017 Edition

pages

Lastly, and alongside the Free Zones and Enterprises, Madagascar intends to create a Special Economic Zone (SEZ), especially partnering with Mauritius. This SEZ will be located in the south of the island (Fort Dauphin) to facilitate trade relations in the Indian Ocean by offering more advantageous customs and tax procedures.

Gabon

Côte d’Ivoire

Réunion & Mayotte

|||||||| Tax rates in Madagascar: a regional comparison Comoro Island

The Malagasy tax system is a classical example focused on: - c orporate taxes, salaries, real estate income, and capital; - a value-added tax mechanism, with VAT recovery either through deductions or reimbursement, in a limited number of cases, and -w ithholding tax on certain income.

The Malagasy taxation system is largely based on self declared income. The authorities, however, have the power to verify the taxpayers’ fiscal situation to ensure that they have discharged their obligations and, if applicable, pay compensation for any prejudice to the Public Treasury due to breach of tax law.

Madagascar has an attractive taxation system with common and sectoral fiscal incentives.

The common fiscal incentives are available to investors in all sectors while the sectoral incentivizing fiscal measures have been introduced to guide investments toward the main sectors of the economy, namely, export, mining, renewable energy, tourism, industry, agriculture, building and public works.

Measures pertaining to the export sector are specified in the Free Zones (Zones franches) and Enterprises Act No. 2007-037 of 14 January 2008, a regime that is applied to investments by domestic and/or foreign investors in export-oriented activities. Free Enterprises include three categories of companies: individual industrial processing enterprises, service enterprises, and basic intensive production enterprises. These enterprises are

exempt from the corporate income tax for the first five or two years, depending on the activity of the enterprise, as of the first year of operations. The Free Zones comprise business companies whose main activity is the management, development and promotion of a zone composed of several free enterprises; these companies benefit, inter alia from income tax exemptions for fifteen (15) years as of the first year of operations.

Enterprises working in the renewable energy, tourism, industry, building and public works sectors are entitled to a tax deduction equal to 10% of the amount of the eligible investment.

Madagascar

MADAGASCAR’S COMPARATIVE TAX ADVANTAGES Free Zone Companies Free Economic Zones (FEZ) Special Economic Zones (SEZ)

46 | 47

Legal and fiscal issues

Corporate income tax

20%

35%

30%

25%

33.1/3%

Tax on capital gains on disposals

20%

35%

30%

25%

19% or 33.1/3%

Withholding taxes

10%

10%

20%

20%

30%

doingbusinessin Madagascar | 2017 Edition

Legal and fiscal issues

LABOR LAWS IN MADAGASCAR Workers’ rights in Madagascar are governed by Law No. 2003-044 of 28 July 2004, the Labor Code.

Open- and fixed-term employment contracts The employment contract can be for an open or fixed term. A fixed-term contract may not exceed two years, and the employer may only have recourse to such contract if the employment covered is not part of the company’s normal activities and entails a specific task whose implementation constitutes the term of the contract.

Legal working hours The Labor Code sets the legal work time at 173.33 hours per month. Additional hours worked are overtime and paid at a higher rate.

Salary scales Since 1 February 2017 the minimum starting salary has been fixed at 155,523 Ariary per month (approx. €48) for agricultural work and 157,748 Ar (approx. €49) for non-agricultural work. Employer costs amount to 18% and wage-related costs 2.9%.

Termination of the employment contract There are four reasons to terminate an employment contract: -d ismissal by the employer; - r esignation by employee; - a greement of both parties; - f orce majeur, determined by the competent legal authorities.

One party alone cannot terminate the fixed-term employment contract except in the event of serious misconduct, as stipulated in the Internal Regulations or, failing this, the decision of the competent legal authorities.

Breach of employer’s overall obligations Any employer who does not comply with the terms of the employment contract and the obligation to open an establishment for labor inspection or does not maintain employer registers to record information to facilitate inspections by labor authorities shall be fined between 300,000 and 1,200,000 Ariary (approximately €93 to €375).

Dispute resolution Depending on the issue, disputes may be brought and heard before the civil, commercial or criminal courts. Otherwise disputes may be submitted to arbitration. The disputes convention is the contract through which the parties agree to submit any existing or potential dispute to the decision of one or more arbitrators, (except for the common law tribunals). This has the advantage of ensuring confidentiality and swift procedures.

ADVICE TO FUTURE INVESTPORS The key to a successful business project is careful preparation. This requires counseling and support from local experts.

Before taking any risks, it is essential to identify, together, the legal and fiscal aspects of the project and to have a clear overview of the steps to project implementation.

This preparation, an essential element in making the investment secure, assumes due consideration of Madagascar's laws and regulations, its economic, fiscal and social environment and the prospects for development

The open term employment contract may be terminated by any one of the parties. Termination is considered wrongful if there is no real or serious cause for it. Wrongful termination of an employment contract can give rise to a “damages” claim; the decision is left up to the labor court. doingbusinessin Madagascar | 2017 Edition

pages

48 | 49

xxxxxxxx

doingbusinessin Madagascar | 2017 Edition

#5

50 | 51 pages

PRIORITY SECTORS Agriculture, livestock, fishery and aquaculture >>> A rich sub-soil, a mine of opportunities >>> Priority to renewable energies >>> Soaring ICTs >>> Infrastructure, levers of growth >>> Tourism: the island of treasures >>> Revival of the textile industry >>>

doingbusinessin Madagascar | 2017 Edition

52 60 68 74 80 84 88

AGRICULTURE, LIVESTOCK, FISHERY AND AQUACULTURE Modernizing the agricultural sector is a major challenge to sustainable and inclusive development in Madagascar where agriculture generates 26% of the GDP, and occupies 80% of the Malagasy population.

THE CURRENT SITUATION There are essentially two types of agriculture in Madagascar: subsistence and cash crop. First there is the traditional, non-professional farming for self-sufficiency, focused mainly on rice cropping (60% of the arable lands are given to this staple).

Close to 80% of the rural population works in agriculture. Second, under the guidance of local and/ or international companies, cash crops are grown, essentially along the eastern coast, in the north and

in the south (sisal plantations) of the island known for their top quality coffee, tea, vanilla, cloves, lychees and cocoa, highly prized on the international market.

Small farmers, attracted by potential financial subsidies, are also growing these types of products on their small plots (between 0.5 and 1 hectare).

The Malagasy authorities intend to combine these two types of agriculture for everyone to benefit and to avoid the pitfalls of two-tiered development.

doingbusinessin Madagascar | 2017 Edition

OPPORTUNITIES FOR DEVELOPMENT The agricultural sector offers many opportunities.

Nearly half the arable lands, i.e. 18 million hectares, are still available. In the globally changing economies of today, the disadvantages of yesteryear agriculture are proving to be advantages. The Ministry of Agriculture has reported that very little chemical fertilizer has been used, only about 3 to 7 kg per hectare, which has certainly affected productivity and held down yields, but, according to EDBM, paradoxically this “lag” is an opportunity in disguise. Consumers are increasingly calling for organic agricultural products. Since the Malagasy lands have not been badly “corrupted” by chemical inputs, they do not need to be depolluted and hence can be cultivated as they now are, if rational agricultural practices are introduced.

|||||||| The major vegetation areas Diégo-Suarez

Broadleaf evergreen forest (whith mangrove on west coast) Deciduous forest Secodary growth (savoka) Savana

Furthermore, the geodiversity combined with climatic variations have contributed to making soils very fertile, ready to grow a variety of tropical crops, spices, and vegetables.

The fact that no part of the island is more than 200 km from a seaport or an airport facilitates transportation and access to international markets. The main and secondary roads, in some places, are not good, especially during the rainy season, but the government is taking the necessary steps to improve the roads throughout the country.

Marsh Majunga

Scrub

Tamatave

Antananarivo Morondava

Fianarantsoa

Last, Madagascar has an abundant, inexpensive, unprofessional but competent labor force, a real advantage compared to other countries that offer similar services.

Mananjary

Farafangana Tulear

Fort-Dauphin

doingbusinessin Madagascar | 2017 Edition

pages

Trump cards for agricultural development • More than half the arable lands are still available.

• Specializing in organic agriculture requires no transition period since fertilizers and chemical products have been used in very small quantities.

• The necessary infrastructure is being renovated or constructed.

• The country has numerous, inexpensive water points (the biggest water resources in eastern Africa).

• L abor is readily available and competitive.

• Rare plants such as Ylang Ylang (needed to fix perfume scents) and Artemisia (used in antimalarial drugs) are already being cultivated, and other products with high added value could also be grown.

• Madagascar enjoys a reputation for excellence, a supplier of top quality products

52 | 53

Agriculture, livestock, fishery and aquaculture

Agriculture, livestock, fishery and aquaculture

Nursery

POTENTIAL DEVELOPMENT OF LARGE PLANTATIONS The land tenure code allows foreign investors to conclude long-term contracts with the State for a period of between 18 and 99 years, depending on the size of the project. This allows investors to develop large-scale agricultural projects for products that require large land areas, such as sugar cane, cocoa, etc.

Most of the investors who are established in Madagascar manage their own plantations and work with Malagasy producers through a system of contract farming.

ADVANTAGES OF CONTRACT FARMING The government encourages contract farming, a system in which foreign investors and small local Malagasy producers and operators conclude partnership contracts. On the one hand, the investors’ companies supply the fertilizers and the technical inputs, organize training sessions, and buy the output, after deducting the price of their investment, which they then sell on the international markets. On the other hand, through this type of private-private partnership the small farmers bonify their land and share their know-how with the investors. They are directly concerned and are anxious to improve the quantity and quality of the yields and thereby generate profit on their own capital.

Besides competitive wages, another advantage of the system is that the producers know how to deal with the local administrative services. This system is based on win-win complementarity and has largely proven its worth.

Using the contract farming model, in July 2017, the Fonds Livelihoods pour l’Agriculture Familiale (Danone) together with some other international enterprises launched a vanilla production project designed to triple the revenue of the Malagasy farmers and supply high-quality vanilla with 10 years traceability.

JOINT VENTURES Joint ventures that bring local enterprises or farmers’ organizations together with investors can also be developed, especially for the installation of processing facilities for products such as tropical fruits and coffee.

Malagasy producers can use their land as their share of the capital and supply their products to the partner in a system that reduces investment costs.

The investor only has to finance the processing facility while the producers can expect to receive dividends, over and above payment for the purchase of their output.

OPPORTUNITIES FOR PROCESSING PLANTS EDBM, besides serving as advisors, makes proposals and downstream analyses of investment possibilities. For instance, after observing that large quantities of fruits such as lychees and pineapples were left to rot since there were no arrangements for preserving, processing or exporting the products, EDBM started encouraging the creation of a processing industry.

doingbusinessin Madagascar | 2017 Edition

Seafood of madagascar Lot IA 90 Bis Manerinerina - Ivato - ANTANANARIVO (Madagascar) Tel.: 00261 3312 04806 - 00261 3479 92248 - 00261 3212 04806 E-mail: manda@moov.mg - Web: www.manda-seafood.mg

PLANT CERTIFIED COMPLIANT WITH EUROPEAN STANDARDS FOR ALL SEAFOOD PROCESSING.

Shrimp - Crab – Octopus – Fish – Prawns – Lobster Squid – Eel – Tilapia.

LIVE - FRESH - FROZEN MANDA SEAFOOD RESTAURANT: known for its seafood

Best Manager of the year 2013

AWARD CAP EXPORT 2013

Mme Bakoly RAZAKANAVALONA General Manager

doingbusinessin Madagascar | 2017 Edition

Agriculture, livestock, fishery and aquaculture

AN ATTRACTIVE FISCAL REGIME Agriculture could fall under the free enterprises regime that is proposed to enterprises with 95% of their production earmarked for export. During the first 15 years, these enterprises do not pay income taxes and are exonerated from VAT on the importation of raw materials, and other materials and equipment. This type of free enterprise regime offers a major tax incentive for the whole country, which is not the case in all other countries.

GROWTH OF THE LIVESTOCK PRODUCTION SECTOR The livestock production sector accounts for 15% of the GDP and 60% of the income for rural households.

Numerical importance, diversity and special features give the livestock sector strong potential especially with close to 35 million hectares of grazing land available which, according to the Ministry of Agriculture, are also suitable for fodder crops.

TYPES OF ANIMAL FARMING - Cattle and dairy cows, - Malagasy zebu, especially popular on the South African market, - Pigs, - Sheep, - Goats, - Bee-keeping, especially profitable because of the abundance of melliferous plants, - Silk worms to make raw silk and silk from mulberry bushes.

The sector is changing completely under the combined effect of the private veterinarians who are opening offices in the rural areas (and form a network of animal healthcare service providers) and the development of partnerships with private national and foreign institutions such as the Pasteur Institute to diagnose diseases and analyze products used in animal feed. The importation of new, better performing, more disease-resistant breeds justifies hope for higher productivity in the medium term future.

Lastly, local demand is a tremendous opportunity for the livestock sector. For supply to meet demand, poultry farming, for instance, impelled by large international groups like Eclosia (in this case through its subsidiary, Avitech) is developing very rapidly throughout Madagascar.

doingbusinessin Madagascar | 2017 Edition

pages

and without the use of poisonous products, 80,000 tons could be sold on the domestic market. The rest, i.e. over 60%, could be sold on the international market. If the structure of the national GDP remains unchanged, marine fishing could account for 15% of the total value of exports, contribute 6.4% to the trade balance and 1.8% to the national GDP. For the economy, sea fishing in the future could generate 324 billion Ariary per year, in other words almost double its present contribution. Sales in shrimp, lobster, holothurians (sea cucumbers and the like), octopus and squid shot up, especially between 1995 and 2008, when shrimp farms increased output by fivefold, but now the market is on the way to saturation.

56 | 57

Agriculture, livestock, fishery and aquaculture

FISHERY AND AQUACULTURE: A BLUE ECONOMY THAT COMBINES WELL-MANAGED EXPLOITATION WITH RESPECT FOR THE ENVIRONMENT “A blue economy that optimizes the work of fisheries and aquaculture with an eye on sustainable and inclusive development that guarantees ecological respect for the fishery resources.”

FISHING, AN UNDEREXPLOITED SECTOR IN A FRAGILE ECOSYSTEM According to Blue Economy Orientation Report and in compliance with the objectives of the NDP and the PMO, there is still considerable room for fisheries offering products with high added value.

With a marine/estuarine potential estimated at 200,000 t/yr, the country can raise its current production by 105,000 t/yr. Pelagic and demersal stock such as the tuna family are the species most readily available in large quantities. In the medium term, and assuming that this fish potential is well managed, with due respect for the environment doingbusinessin Madagascar | 2017 Edition

© Source GAPCM

Fishery resources in Madagascar: - 5,000 km of coast; - an Exclusive Economic Zone (EEZ) of about 1,140,000 km²; - 50,000 ha of tannes* behind the mangroves; - 155,000 ha of lakes and lagoons; - 1,300 km2 of natural water bodies suitable for fish farming. *open treeless areas

Agriculture, livestock, fishery and aquaculture

AQUACULTURE, AN UP AND COMING SECTOR Surprisingly aquacultural farms can be developed inland, and are considered a promising source of foreign currency since their products are exported to international markets. Algoculture, holothuriculture (sea cucumbers) and fish farming in ponds are growing 20% per annum, yet consume less than 10% of their potential. The potential contribution of this sector could be increased tenfold if support measures were introduced using an integrated approach.

ARTISANAL FISHING AND FISH FARMING FOR ADDED INCOME Small-scale fisheries and fish farming are classified as “low investment/high return activities with quick returns on investment”. They play an unquestionable role as a source of additional revenue for the people living in a subsistence economy. The chances that fisher households will be poor are 15% lower in urban areas and 20% lower in rural areas than for non-fisher households. The impact on poverty reduction is greater than in other sectors with similar public investments.

The local market is bullish for products from fishing and aquaculture, especially in the big cities like Antananarivo and Tamatave. EDBM added that the big mining companies, both present and future, will be good customers for these products. The same can be said for the regional markets through trade agreements with SADC, COMESA, etc. signed by several countries that do not have enough aquatic resources or do not have direct access to the sea.

There is a whole range of markets taking shape that give the sector hope for a bright future

© Source membre du GAPCM

Aquacultural frams

doingbusinessin Madagascar | 2017 Edition

Historical leader of Madagascar shrimp production UNIMA Group, a team of 2000 Nature-friendly farming • Low stocking density • Feed free of GMOs (*< 0.9%), antibiotics, terrestrial animal products • Minimal impact on the environment

Protected mangroves • 100% of the mangroves protected and built up • 900,000 mangrove trees planted •B iggest Madagascar mangrove conservation program, implemented with the local communities

Contributions to well-being of local communities • More than 7,300 children schooled • 1,900 persons receive medical care monthly • More than 5,000 people have access to drinking water and electricity

As a responsible player, UNIMA works actively on community development and environmental preservation.

UNIMA - Lot VJ2 AD – Cité SECIM Ambohimiandra BP 6070 - 101 ANTANANARIVO - MADAGASCAR Tel: 261 20 22 478 80/81/82 - secretariat.qlm@unima.mg - www.unima.com

Madagascar International Container Terminal Services Ltd. An ICTSI Group Company

HLY G I H G ERIN SERVICE F F O ABLE 24/7) I L E R / (360 VING I R T S S^ Y A W AL FOR NCE E L L E EXC ENT M P ELO DEV RTNER PA

ENHANCED PERFORMANCE AT TOAMASINA PORT THROUGH PUBLIC- PRIVATE PARTNERSHIP In June 2005, International Container Terminal Services Inc. (ICTSI) signed a 20-year contract with Société de Port à Gestion Autonome de Toamasina (SPAT) for the operation, management, financing, rehabilitation and development of the Container Terminal in the Port of Toamasina through a Public-Private Partnership.

ICTSI is headquartered in Manila (Philippines) and is specialized in the management and development of ports and container terminals.

The group is in charge of 28 ports and terminals around the world.

MICTSL container yard view

A MODERN TERMINAL TO SERVE THE NATIONAL ECONOMY Since taking up the role of Container Terminal operator in the Port of Toamasina, MICTSL (Madagascar International Container Terminal Services Ltd.), a subsidiary of ICTSI Group, has covered all aspects of the terminal’s modernization: infrastructure, equipment, methods and working process.

As a stevedoring company, MICTSL’s main activities consist of discharging, storing and shifting, delivering, receiving and loading containers.

Its financial strength, know-how and experience constitute advantages when serving the operators and the whole logistics chain in Madagascar. The port sector is listed as one of the priorities in the National Development Plan.

For the specific case of Toamasina, its performance has a significant impact on the Malagasy economy since it contributes to reducing costs and delays for shipping lines, importers, exporters, trucking companies, clearing agents, the State, etc.

doingbusinessin Madagascar | Edition 2017

Enhanced performance at Toamasina port through public- private partnership

PORT OF TOAMASINA’S COMPETITIVE ADVANTAGES • Container Terminal is reliable and efficient The excellent dockside facilities provide fast turnaround service for sea-going vessels and at the same time contribute to maintaining fixed berthing windows set up by MICTSL and SPAT. The system consisting of attributing a berthing window (with specified days and hours) for each shipping line serving Toamasina regularly is a guarantee of reliability for importers and exporters towards their planning, and avoid vessels waiting at anchorage.

This reliability and high level of vessel productivity at the container terminal of Toamasina remain unsurpassed in the Indian Ocean and East Africa.

Furthermore, MICTSL’s activities in the Port of Toamasina are certified ISO 9001-2015 for its quality management system and ISO 14001-2015 for its environmental management system.

• An integrated management system to serve the port community Similarly to other operators in the world’s main ports, MICTSL is using a dedicated Terminal Operating System which, inter alia, ensures: - tracking of goods by real time monitoring of the movement of containers transiting through the terminal, - easier port formalities illustrated by those for export, fully paperless and in compliance with international trade practices, - availability of information through real time electronic data exchange with customs authorities and shipping lines, - fast loading and discharging time for vessels and trucks.

All of the above contributes to smooth traffic flows inside and outside the port zone and plays a major role in ensuring the security of goods and State revenue.

• Security is one of MICTSL’s recognized strengths With regards to safety and security, the terminal has been certified in compliance with ISPS code (International Ship and Port facility Security) and ISO 28000-2007 which refers to the supply chain safety management.

The Terminal is covered by a CCTV system and other technological and human safety safeguards.

No major security incident has been recorded at the Port of Toamasina in the last ten years and efforts to maintain this record are being strengthened both by the terminal operator, MICTSL, and port authorities.

A SUCCESSFUL PARTNERSHIP The latest generation of handling equipment, experienced personnel and various systems are available to contribute to the economic rise of Madagascar.

The Malagasy government’s collaboration with ICTSI is an example of a successful Public-Private Partnership where modernization driven by the private sector has direct positive effects on the national economy, especially by securing customs revenue, and on the city of Toamasina where the port is located. MICTSL will continue to invest to deal with the steady increase in volume, and the port authorities have launched the berth extension plan to accommodate larger container ships

doingbusinessin Madagascar | Edition 2017

Container Terminal main entrance

100 OF THE LARGE BUSINESS Rank COMPANY

Sector

Establishment

Mines industry

2007

2014 T/O in euros

2015 T/O in euros

Net balance, 2015 in euros Contact

2

Ambatovy Joint-Venture - Ambatovy Minerals SA (AMSA) et Dynatec Madagascar SA (DMSA)) Axian Group

Multiple products

n/i

3

Galana Groupe

Hydrocarbons

2000

250,563,986 223,078,260

4

Total Madagascar

Hydrocarbons

1999

177,000,000 177,000,000 18,000,000 www.total.mg

5

Sipromad Groupe

Multiple products

1972

n/i 160,000,000

n/i www.sipromad.com

6

Brasseries Star

Industry

1953

175,000,000 151,000,000

n/i www.groupe-star.mg

7

Jirama

Energy

1975

140,000,000 132,000,000 -85,000,000 www.jirama.mg

8

Société Malgache des Pétroles Vivo Energy SA

Hydrocarbons

n/i

n/i

89,000,000

9

Air Madagascar

Air transport

1961

122,000,000

69,500,000

10 Orange Madagascar

Telecommunications

1997

70,735,000

68,300,000

4,730,000 www.orange.mg

11 Basan Groupe

Industry

1947

n/i

60,000,000

n/i www.basan.mg

12 Logistique Pétrolière SA

Transport

1999

37,500,000

58,400,000 27,000,000 261 20 22 379 34

44,804,000

52,537,581 23,373,789 www.bfvsg.mg

1

13 BFV - Société Générale

Banking

1998

14 Taloumis Groupe

Multiple products

n/i

15 HFF (Henri Fraise Fils & Compagnie)

Multiple products

16 Bank Of Africa Madagascar

540,000,000 600,500,000 n/i 505,450,000

n/i www.ambatovy.mg n/i www.axian-group.com n/i www.galana.com

4,600,000 www.vivoenergy.com n/i www.airmadagascar.com

n/i

50,000,000

n/i 261 20 22 394 48

1928

37,100,000

47,700,000

2,219,000 www.henrifraise.com

44,700,000 16,000,000 www.boa.mg

Banking

1999

40,000,000

Multiple products

1987

n/i

43,150,000

Trade

2002

41,862,000

38,572,000

760,000 261 20 22 210 13

19 Jumbo Score (Société Malgache de Magasins)

Trade

2007

35,000,000

37,200,000

n/i 261 20 22 684 60

20 Ouest Sucre SA

Sugar

1930

n/i

17 SMTP Groupe 18 Ucodis (Union Commerciale de Distribution)

21 Lafarge-Holcim Madagascar

n/i www.groupe-smtp.com

36,600,000 -15,200,000 261 20 62 913 09

Trade & industry

1950

33,000,000

36,000,000

4,350,000 261 20 22 293 88

22 ARO

Insurance

1974

34,407,000

35,750,000

2,930,000 www.aro.mg

23 BNI Madagascar

Banking

1991

32,200,000

34,580,905 16,296,191 www.bni.mg

24 QMM (QIT Madagascar Minerals)

Mines

2003

62,500,000

34,500,000 -37,000,000 www.riotinto.com

Construction

2005

42,000,000

32,000,000

Tobacco industry

1991

26,000,000

31,800,000

9,600,000 261 20 22 353 72

27 Pche et Froid Océan Indien

Industry

1991

36,000,000

31,700,000

-2,650,000 261 20 82 221 21

28 Trimeta Agro Food

Trading

1975

25,000,000

29,100,000

29 CFAO Madagascar

Automotive

1994

23,500,000

28,511,000

2005

25,200,000

27,527,581 12,534,773 www.bmoinet.net

1952

25,500,000

26,800,000

32 MADAUTO (Madagascar Automobile)

Banking Pharmaceutical distribution Automotive

1973

24,300,000

26,000,000

33 EDL Group - Edelec Massmarket et Industries

Multiple products

1968

4,600,000

24,000,000

Trade

n/i

n/i

23,200,000

250,000 nc 350,000 www.sanifer.mg

25 Colas Madagascar SA 26 PROMODIM - Promotion & Distribution à Madagascar

30 BMOI (Banque Malgache de l’Océan Indien) 31 OPHARM (Office Pharmaceutique Malgache)

34 Nosima Sarl 35 Sanifer

920,000 www.colas.com

740,000 nc n/i www.sicam.mg 380,000 261 20 222 0673 1,100,000 www.madauto.com n/i www.edl.mg

Trade

1993

17,000,000

22,200,000

Telecommunications

1999

21,900,000

21,960,800

37 Epsilon

Textile

1992

19,300,000

20,380,000

38 Kraomita Malagasy SA

Mines

1975

16,800,000

19,600,000

1,850,000 www.kraoma.mg

36 Camusat Madagascar

39 Origines

n/i www.camusat.com n/i 261 20 22 446 17

Industry

2001

11,200,000

19,600,000

5,500,000 www.symrise.com

Fishery, industry

1992

n/i

19,000,000

2,400,000 www.unima.com

Industry

1999

18,200,000

17,400,000

3,500,000 www.vitogaz.mg

Trade

1957

16,000,000

16,500,000

43 Madecasse (Groupe)

Multiple products

1955

n/i

15,700,000

44 Canal+ Madagascar

Telecommunications

2012

12,100,000

14,900,000

Industry

1989

10,750,000

12,300,000

Textile

2007

5,140,000

10,500,000

47 Blueline-Gulfsat

Telecommunications

1998

13,125,000

10,000,000

48 Distribution Leader Price Madagascar

Wholesale trade Information technology services Transport

2004

8,500,000

10,000,000

2007

10,500,000

9,800,000

2001

9,900,000

9,750,000

40 Aqualma SA (Groupe Unima) 41 Vitogaz Madagascar 42 Materauto SA (Matériel Automobile & Industriel)

45 Newpack 46 Mazava Sportswear Sarl

49 Gasynet SA 50 DHL International Madagascar

983,000 www.materauto.com n/i www.madecasse.mg 123,500 www.canalplus-madagascar.com n/i www.newpack.com 1,500,000 261 20 24 522 88 241,000 www.blueline.mg 74,000 261 20 22 627 97 1,012,000 www.gasynet.com 290,000 www.dhl.com

C O M PA N I E S I N M A D A G A S C A R Wholesale trade

1996

2014 T/O in euros n/i

52 Microcred Banque Madagascar

Banking

2006

12,800,000

9,501,251

53 Sagemcom Energy & Telecom

Energy

1996

9,000,000

9,500,000

54 SOMAP CHE - Société Malgache de P cherie

Fishery

1963

10,000,000

9,500,000

975,000 261 20 62 220 73

55 Société Rasseta

Trade

1979

9,500,000

9,300,000

1,450,000 261 20 22 257 70

Rank COMPANY 51 Socoma (Société Commerciale Mahasoa)

56 ABM (Access Banque Madagascar)

Sector

Establishment

2015 T/O Net balance, in euros 2015 in euros Contact 9,600,000 240,000 261 20 22 229 07 1,282,801 www.microcred.mg 920,000 261 20 22 365 72

Banking

2006

n/i

8,700,000

1,900,000 www.accesbanque.mg

Insurance Construction, real estate, trading Industry and trading

1968

9,300,000

8,700,000

1,115,000 www.nyhavana.mg

2001

7,200,000

8,350,000

n/i

8,150,000

Trade

1987

8,800,000

8,000,000

Agriculture & industry

2000

6,796,000

8,000,000

Trade

n/i

7,150,000

7,620,000

n/i 261 20 22 254 50

Wholesale trade

2012

n/i

7,400,000

220,000 www.madetrades.mg

64 MCB (Mauritius Commercial Bank)

Banking

1992

6,000,000

7,192,131

65 EPI (Euroasia Philippines,Inc)

Services

2011

6,500,000

7,100,000

66 PMU Madagascar

Services

1996

7,600,000

7,050,000

19,000 www.pmu.mg

67 Adema (Aéroports de Madagascar)

Air transport

1990

6,800,000

7,010,000

605,000 www.adema.mg

68 Caisse d’Epargne de Madagascar

Banking

2006

6,000,000

7,000,000

660,000 261 20 22 259 60

69 BEAL Sarl

Industry

2008

6,700,000

6,900,000

1,700,000 www.bealplanet.com

Agrifood industry

1971

5,545,000

6,650,000

Transport

2001

8,800,000

6,550,000

72 SALAMA

Trade

1996

6,200,000

6,200,000

340,000 www.salama.mg

73 Société YKA Dimaco SA

Trade

2003

8,500,000

6,090,000

-403,000 www.dimaco.com 1,750,000 www.kingdeer.com.cn

57 Ny Havana - Compagnie Malgache d’Assurance et de réassurance 58 SOBATRA - Société de Batiment et Travaux 59 LDCL 60 ENAC (Etablissement Nourdine Alibay & Compagnie) 61 FLORIBIS 62 Comadis - Rhumerie L’Île Rouge 63 Madetrade

70 Socolait (Société Commerciale Laitière) 71 Madarail SA

74 KDC (Madagascar King Deer Cashmere Co Ltd)

n/i

310,000 www.location-btp.com -400,000 nc 210,000 www.enac.mg n/i www.floribis.com

2,670,447 www.mcbmadagascar.com 230,000 www.euroasia.com.ph

n/i www.socolait.net -3,100,000 www.madarail.mg

Textile

1998

3,900,000

6,030,000

75 Cimelta Madagascar SA

Construction

1946

9,000,000

5,900,000

76 SMATP (Société Sino-Malgache de Travaux Publics)

Construction

2005

5,100,000

5,900,000

230,000 261 20 22 316 42

77 Sogea Satom Madagascar

Construction

2003

13,000,000

5,900,000

-336,000 www.sogea-satom.com

78 ENDUMA (Société d’enduction de Madagascar)

170,000 www.cimelta-madagascar.com

Industry

1977

5,600,000

5,800,000

220,000 www.enduma.mg

Agriculture & trading

2007

4,300,000

5,600,000

102,000 261 20 88 923 27

Trade

2010

6,800,000

5,400,000

450,000 www.flowserve.com

Trade and services

1990

5,050,000

5,200,000

450,000 261 20 22 234 12

82 BATPRO

Wholesale trade

1966

5,500,000

5,000,000

83 Symrise

Industry

n/i

n/i

5,000,000

84 Crown

Industry

1951

6,900,000

4,900,000

85 Pechexport

Fishery

1983

5,400,000

4,800,000

625,000 www.freshpack.fr 300,000 www.sopharmad.com

79 AFH Export 80 Flowserve Sales International 81 SOMADIS - Société Malgache de Distribution

86 SOPHARMAD (Société Pharmaceutique de Madagascar) 87 OMNIS - Office des Mines Nationales & des Industries Stratégique 88 G4S Madagascar Solutions de Sécurité 89 Les Pêcheries de Nosy-Be SOFITRANS (Société Financière pour le développement des 90 Transports et du Tourisme) 91 Allianz Madagascar Assurances

160,000 www.batpro-madagascar.com 3,000,000 www.symrise.com n/i 261 20 53 327 77

Trade

1988

4,300,000

4,750,000

Hydrocarbons

1976

4,500,000

4,650,000

Services

2003

5,500,000

4,600,000

310,000 www.g4s.mg

n/i www.omnis.mg

Fishery

1970

4,700,000

4,600,000

110,000 www.unima.com

Multiple products

1969

5,500,000

4,600,000

-90,000 www.sofitrans.mg

Insurance

2006

4,100,000

4,500,000

287,000 www.allianz-madagascar.com

Trade

n/i

6,600,000

4,500,000

30,000 www.sipromad.com

Industry Information technology Construction

1945

4,200,000

4,300,000

630,000 www.ets-gallois.com

1995

4,300,000

4,300,000

-60,000 www.vivetic.com

1998

6,100,000

4,300,000

Textile

1993

3,900,000

4,120,000

838,000 261 20 22 314 94

97 FTHM Consulting

Services

1994

4,200,000

4,116,070

-57,280 www.fthm.mg

98 SMMC (Société de Manutention des Marchandises Conventionnelles)

Logistics

2007

4,050,000

4,000,000

99 SAHAM ASSURANCE

Insurance

2005

4,300,000

3,960,000

530,000 www.sahamassurance.com

Finance

n/i

n/i

3,750,000

380,000 www-otivtambatra.e-monsite.com

92 Société Rahantarisoa 93 Établissements Gallois SA 94 Mad’Com (Vivetic) 95 SCB (Société de Constructions et de Bâtiments) 96 PLG Confection

100 OTIV Figure as at 31 December 2015 - Source : Ecoaustral

61,000 www.scb-madagascar.com

31,000 www.smmc.mg

The Malagasy sub-soils are replete with natural resources that can be exploited under environmentally-friendly conditions. The mining industry should be thriving by 2025.

Construction

of the Sherritt nickel processing plant in Toamasina.

A MULTIFACETED MINING POTENTIAL Madagascar, the Grande Île has large mineral reserves. Not only precious stones but also industrial minerals. And this abundance of wealth is found throughout the country.

The Chambre des Mines de Madagascar (CMM) classifies the minerals as follows: •n on-metallic minerals used for construction, public works and energy production, such as sand, clay, marble, limestone; •m ineral substances for industrial use, i.e. iron, chromium, manganese, vanadium, zirconium, titanium, ilmenite;

• b ase metals such as iron, copper, lead, aluminum, tin, cobalt, and nickel; •p recious metals such as gold, silver, and platinum; •p recious and semi-precious stones such as beryl, sapphire, emerald, ruby, rose quartz, topaz, tourmaline, amethyst, aquamarine; •m ineral substances for energy production: hard coal, brown coal, lignite, graphite; • o ther minerals such as mercury, lithium, magnesium, radium, rare earths, uranium, vanadium.

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© COLAS - Jacques Fernandès

A RICH SUB-SOIL, A MINE OF OPPORTUNITIES

DESPITE A LACKLUSTER ECONOMIC PICTURE, MEDIUM-TERM PROSPECTS LOOK GOOD The current bearish prices for raw materials on the international market have forced the mining companies to reduce their extraction rate. Despite the current economic slowdown, prospects for the medium term are relatively optimistic. Depending on the scenario, and considering factors such as the market price, FDI attractiveness, socio-political stability, and improvements to infrastructure, the World Bank predicts that industrial mining could account for 4 to 14 percent of GDP and dominate Madagascar’s exports by 2025. If these predictions come true, Madagascar will soon become a “resource-rich country”, in IMF terms, in other words a country where depletable natural resources for many years will account for at least 20% of the total exports i.e., 20% of revenue from natural resources.

QMM was launched in 2009. The Anglo-Australian mining giant Rio Tinto owns 80% and the Malagasy State 20%. The mining site is composed of an ilmenite, rutile and zircon extraction operation at Tolagnaro in the southeast of Madagascar, a separation floating plant, and port facilities. The extracted ilmenite is exported then enriched in Rio Tinto’s Sorel-Tracy facility in Canada.

The total investment amounts to US$ 1.1 billion, including US$ 930 million in Madagascar as of 2008. QMM has a potential capacity of 496,000 tons per year of ilmenite and 26,710 tons per year of zirsill.

The similarity in the IMF and the World Bank findings confirm the high-growth rate of the Malagasy mining sector. As long as world prices do not plummet, a good public policy plan (the Mining Code is being negotiated) can enable this sector to offer appealing development prospects to investors, the State and the people (GDP growth, tax revenue, direct and indirect job creation, etc.).

PIONEER PROJECTS TO STIMULATE MINING ACTIVITIES Madagascar has a long history in the mining business that dates back to small scale and artisanal gold mining and gemstone extraction. Between 2005 and 2012 large-scale mining was developed with the launching of QIT Madagascar Minerals (QMM) and Ambatovy, two major industrial projects that are now operational.

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A rich sub-soil, a mine of opportunities

OMNIS

What does the future hold for OMNIS? OMNIS aims to become one of the greatest contributors to the development of the national economy.

With an eye on making Madagascar a prosperous, economically fast-growing nation, OMNIS is seeking to develop partnerships with national and international companies that are anxious to contribute to the growth of the national petroleum, uranium and coal sectors.

OMNIS intends to strengthen its position in this sector.

Bonaventure RASOANAIVO, OMNIS Director General

What are your goals?

The main purpose of OMNIS is to implement the national petroleum and minerals exploration and exploitation policy, capitalize basic geological data, and develop partnerships with foreign oil and mining companies.

Madagascarâ&#x20AC;&#x2122;s petroleum blocks are spread over five sedimentary basins. OMNIS is responsible for developing the potential of these blocs, which has already been determined through studies. We need to find international partners to explore and exploit our petroleum resources.

We represent the State in Production Sharing Contracts with companies working on site, both present and future.

What services do you offer investors?

During the preparatory phase, OMNIS provides the investors the data required for exploration and eventually exploitation. Before their arrival, OMNIS offers them technical and administrative assistance.

Thereafter we are in charge of auditing, monitoring and assessing the work as it progresses. As a regulatory body, OMNIS ensures that the companies respect their commitments at each stage of their work. We have drilling machines available for various services. And our laboratory has a capacity for mineral processing and analyses, biostratigraphic studies, stratigraphy and sedimentology, geochemical and physico-chemical analyses (coal, jatropha and hydrocarbons).

What investments do you expect in 2018 in your sector?

OMNIS intends to promote offshore petroleum blocks by launching an international call for tenders. We will focus on basins with high potential for which we have studies and exploration data. The promotion campaign will cover 40 off-shore blocks and 35 onshore blocks.

Further, for the unexplored zones, we will negotiate contracts with companies that offer geophysical services for geophysical and seismic data acquisition operations.

Using its own resources, OMNIS will contribute to the exploration work by studying and evaluating petroleum blocks on the basis of data acquired during its forty years of experience.

Although it is difficult to guesstimate the number of companies that may come to invest in Madagascar, we hope that all these efforts will convince a certain number of companies to join our current partners.

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Madagascar is on the verge of something big, and wants serious investors to be part of it.

Strengthened by 40 years of experience in the oil industry, and charged with promoting partnerships between the government and itnternational oil companies (IOCs), OMNIS is the partner of choice for those looking to participate in the latest round of exploration openings.

OFFICE OF NATIONAL MINING AND STRATEGIC RESOURCES (OMNIS) BP 1bis â&#x20AC;&#x201C; 21, Rue Razanakombana Ambohijatovo Antananarivo 101 â&#x20AC;&#x201C; MADAGASCAR +261 20 22 242 83 secdg@omnis.mg communication@omnis.mg www.omnis.mg

As the reference point for Oil and Gas companies wanting to take part in the development of the sector, OMNIS will continue as it has for the last 40 years, to ensure the creation of incentives and competitive environments for investments, and access to up-to-date exploration data to allow for easy and reliable prospect appraisal.

40 offshore blocks and 10 onshore blocks will shortly be opened up to bidding from IOCs.

Committed to a better future

A rich sub-soil, a mine of opportunities

Besides these two projects, there are other resources such as coal, iron, graphite and limestone that are in the exploration phase.

Oil production has been started through a pilot project at the Tsimiroro site (center-west of the country); much more exploration is expected.

Madagascar Oil is the most advanced on-shore company with an average pilot-scale production by vapor injection of 465 barrels a day (March 2014). The company has a partnership agreement with Total to explore the neighboring field of Bemolanga. The off-shore oil potential has not yet been confirmed but the proximity to fields in Mozambique suggests the existence of similar resources in Madagascar.

The Ambatov Project was launched late in 2012 by a consortium composed of Sherritt International Corp. of Canada (40%), Sumitomo Corp. of Japan (27.5%), Korea Resources Corp. of the Republic of Korea (27.5 %), and SNC-Lavalin Inc. of Canada (5%). It produces nickel, cobalt and ammonium sulphate (as a refinery by-product) from a mine near Moramanga. The ore slurry is transported to Toamasina in eastern Madagascar through a 220 km long pipeline to a processing plant whose product is shipped from the Toamasina port to international markets. With an investment of $7.2 billion in 2013, it has a capacity of 60,000 tons per year of refined nickel, and 5,600 tons per year of cobalt.

According to the World Bank, these two projects have made a major contribution to infrastructure development, namely, a port, roads, bridges, social services facilities, a thermal power station, power lines, and a water distribution system.

THE “HOW TO…” FOR INVESTORS The Mining Registry Office of Madagascar (BCMM) delivers mining permits. The procedure is rather simple. The first step is to apply for a research permit, which is a prerequisite to obtaining an exploitation license.

Furthermore, the Malagasy law requires mining companies to carry out an environmental impact study that must be approved by ONE (Office national de l’environnement).

In the hydrocarbons sector, petroleum companies are required to sign a contract (contrat pétrolier) with OMNIS, the Office of National Mining and Strategic Resources (Office des Mines Nationales et des Industries Stratégiques) before being authorized to conduct any hydrocarbon exploration, research, extraction, or transfers.

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64 | 65

A rich sub-soil, a mine of opportunities

TAX INCENTIVES The major mining companies can benefit from the law on large mining investments (LGIM). This law (No. 2001-031), amended in 2005 (2005-022), offers many incentives such as tax benefits through an exemption from corporate income tax (IBS) for the first five years (Art. 47), many deductions (Art. 50) and tax breaks for investments in infrastructure (Art. 52). The law provides compensation in case of nationalization or expropriation by the State (Art. 98) and guarantees freedom of movement and commercialization of mining products. These measures comply with the Mining Code, now being revised.

Ambatovy is the only company that benefits from the LGIM at present

GOALS The Bureau du Cadastre Minier de Madagascar (BCMM Madagascarâ&#x20AC;&#x2122;s Mining Registry Office) was created by decree 2000-308 of 10 May 2000 as a public institution of an industrial and commercial nature.

It is technically accountable to the Ministry of Mines and Petroleum and financially accountable to the Ministry of Finance and Budget.

The primary mission of BCMM is to manage mining authorizations and licenses from the time of application to the date of expiry, based on three basic values: clarity, transparency and efficiency. The exploitation license is delivered within a maximum of thirty (30) business days. The BCMM also contributes to the national and international promotion of the Malagasy mining sector.

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Site de Mandena, RIO TINTO

The Mining Business Center The Mining Business Center (MBC) is the perfect place to introduce new products and services.

By providing complete information on the state of the mining sector in Madagascar in one single location, the Mining Business Center facilitates the development of partnerships between companies and with importers.

Office cubicles can be rented, giving your company space to heighten its image and add to its reputation and notoriety.

A mine of opportunities â&#x20AC;&#x201C; the gateway to Madagascar Located a few kilometers from the Ivato International Airport, and near the capital, Antananarivo, the Mining Business Center (MBC) is an exceptional, modern showcase of the Malagasy mining sector that honors the countryâ&#x20AC;&#x2122;s subsoil resources.

With a built up area of 6,600 m2 on 12,000 m2 of land, it is primed to offer new solutions to operators and buyers of gems, precious stones and also industrial metals.

A Malagasy mining hub The Mining Business Center will be the official front office of the mining sector in Madagascar. It will facilitate relations between professionals and serve as a one-stop-shop for individual clients.

All the mining administration services for the mine operators will be available at this one location. The Mining Business Center will be both the gateway to mining investments in Madagascar and a platform for trade with domestic and foreign investors.

The hall where life bustles The hall is an especially attractive, luxuriously decorated area, with daylight streaming through its large bay windows.

It has built-in flexibility and can meet the manifold requirements of a variety of events: activities related to the mines, international fairs, etc.

Services that fit your ambitions • A building with a stand alone energy supply using hybrid installations (solar and thermal), and an independent drinking water production capacity. No risk of energy shortages.

• A shopping mall with 32 ±12 m2 cubicles installed in the gallery, which is divided into 4 sections.

The office cubicles allow operators and buyers to carry out their transactions or exhibit their products easily.

These are modular installations, individually partitioned and equipped with a roller shutter and floor covering. Each one can be customized to satisfy the client’s taste and particular requirements.

• A banking area with a currency exchange office and a bank.

• Four VIP lounges to welcome your prestigious guests and organize your events, bilateral meetings, etc.

• A 1000–seat amphitheater to comfortably accommodate your congresses, seminars and exhibitions. Its cutting edge audiovisual equipment will meet all your needs.

• 2 restaurants, a general library and a map library on mining.

• A sure place for your transactions: “safety and security” were the leitmotivs during the MBC creation and construction period.

It is safe to do business in this Center.

The area is protected with state-of-the-art security equipment such as metal detectors, magnetic access, video control, etc.

Bureau du Cadastre Minier de Madagascar.

Rue Farafaty Ampandrianomby Antananarivo, Madagascar.

Tel: +261 20 22 400 29 E-mail: bccm@moov.mg

PRIORITY TO RENEWABLE ENERGIES The energy sector is being completely redesigned. To cope with the country’s electrification problems and capitalize the country’s resources, the government is placing high stakes on renewable energy.

Andranomamofana

hydropower plant

TIME TO TAKE STOCK Only 20% of the Malagasy people have access to electricity, and the majority of these people live in urban areas. The farmers use firewood and charcoal, with most of the wood coming from illegal sources that destroy the forests. According to the Minister of Energy this is one of the main causes of deforestation and forest degradation. It depletes the country’s natural resources and makes the country more susceptible to the effects of climate change.

In response to this emergency situation, and in compliance with the NDP, the authorities adopted a 2015-2020 New Energy Policy (NPE). Aside from economic, social and environmental considerations, the aim is to stimulate the development of renewable energy sources.

THE ROLE OF JIRAMA, THE NATIONAL ELECTRICITY OPERATOR Jirama, the national water and electricity company of Madagascar was created on 17 October 1975.

Besides its monopoly position in electricity distribution and infrastructure development, Jirama supplies water for industry and households throughout the country. To cope with problems of governance and management that impacted the State budget, a consultant was appointed, upon recommendation of IMF, to establish PAGOSE, the Projet d’amélioration de la gouvernance et des opérations du secteur de l’électricité (Governance and Operations in the Electricity Sector Improvement Project) a project that brings the Malagasy government together with the World Bank. Three

doingbusinessin Madagascar | 2017 Edition

major reform measures proposed by IMF need to be adopted: i) new texts on tariff changes for electricity and water; ii) reorganization of executive staff; iii) tranformation of the company’s status into a commercial entity. A Revenue Protection Program (RPP) has recently been adopted. Smart meters have been installed to check the consumption of new subscribers and, henceforth, there will be more control measures in order to eliminate illegal connections that weigh heavily on the company’s budget.

pages

EOLIAN POTENTIAL Eolian resources are considerable but are not evenly located throughout the country. This form of wind energy can be used to pump water or to create low power air generators, especially with the following average annual wind speeds: in the North, between 6 and 9 m/s at a height of 50 m; Center between 6 and 6.5 m/s at a height of 50 m; South between 6 and 6.5 m/s at a height of 50 m; far South (Taolagnaro, Tsihombe, Itampolo, Androka, Vohimena, and Tanjona): above 8-9 m/s at a height of 50 m.

|||||||| Hydroelectric and eolian potential

MADAGASCAR IS AN IMMENSE RESERVOIR OF RENEWABLE ENERGY • Th e hydraulic potential of the country is estimated at 8000 MW but only about 160 MW are used; •N early all the regions of the country have more than 2800 hours of sunshine per year, or the equivalent of 1500-2100 kWh/m2/year. Exploiting this type of energy could contribute to poverty reduction in the rural areas.

•A nnual average wind speed is between 3 and >8 m/s at a height of 50 m, which gives a potential of about 2000 MW. HYDROELECTRIC POTENTIAL The country has a hydraulic potential that is among the greatest in Africa but is underexploited. There are 1500 sites throughout the country: Centre, North-West, North and East, but not in the South where there are very few potential sites and the river flow rate is irregular. The sites have been identified and are being studied. The total potential is close to 8000 MW.

68 | 69

Priority to renewable energies

5 4 3 2

2 3

6

7 7

Diana Sava Sofia Analanjirofo

3

6 5 4 3

Boeny

3

Betsiboka

Melaky

AlaotraMangoro Analamanga 3 Bongolava Itasy Atsinanana Vakinankaratra

Menabe

3

Amoron'i Mania

3

Haute Matsiatra

AtsimoAndrefana

VatovavyFitovinany

Ihorombe

AtsimoAtsinanana

3

4 Anosy

4

5

Region with hydroelectric potential 4 Average annual wind speed in m/s

Androy

5 6

7

7

6

Source: Service de la météorologie nationale

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Priority to renewable energies

|||||||| Global horizontal irradiance Antsiranana

Mahajanga

Antsiranana

Antananarivo

Fianarantsoa

SOLAR ENERGY POTENTIAL The solar energy potential is especially great in the West and South regions. Solar energy can be used to generate low cost electricity, especially through urban production and the off-grid installations in the rural areas, using new technologies for producing electricity and light at prices that will decline with the development of economies of scale.

PROSPECTS FOR DEVELOPMENT AT TIMELINE 2030 For the year 2030, the NPE has made prospective studies that predict the following breakdown: 75% hydropower, 5% wind and 5% sun, which gives a total of 85% clean energy. The remaining 15% will be thermal energy.

The goal for the year 2030 is to provide stable access to electricity to 70% of the households.

Rural electrification is managed by Agence de Développement de l’Electrification Rurale (ADER).

In areas where electricity access rates are still low, studies are being made on the development of solar panel installations. In May 2017, for instance, the magazine Ecofin announced that the 25,000 inhabitants of Andralanitra, a village near Antananarivo, are already benefiting from the first two solar trees established on the Island. Start-ups like Mahazava (see interview page 79) are also offering innovative solutions.

FINANCIAL ARRANGEMENTS For the 2015-2020 period, an estimated US 1.2 billion dollars will be needed for capacity building in the energy sector. Funding will be obtained through the private sector, the TFP (technical and financial partners) and the Government. Public-private partnerships (PPP) will be encouraged

Toliara

Annual Average / kWh/m2 1500

1700

1900

2100

> 2100

source : Solar Map © 2014 GeoModel Solar

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*“It is not enough to take steps which someday lead to a goal; each step must be itself a goal and a step forward“- Goethe

Together with you*

Consultancy firm Energy - Water - Infrastructure - Environment - Mining 06, Rue Fredy Rajaofera - B.P. 5063 - Antananarivo MADAGASCAR Phone: (261 20) 22 632 21 - Fax: (261 20) 22 632 19 E-mail: glw@moov.mg - www.glw-international.com

Madagascar | GreenYellow

GreenYellow is a leading worldwide operator in solar photovoltaic power and energy efficiency with offices in the Indian Ocean, Africa, Europe, Latin America and Asia. Since its inception in 2007 the France-based GreenYellow has been applying the philosophy that signed its success: being a reliable, long-term local partner who is committed to turning the energy transition into a new shared value. The company enrolls the expertise of its 200 co-workers to help reduce the energy bill of local economic players.

GreenYellow is one of the few companies to offer expertise in all facets of the energy sector, from decentralized energy production (especially photovoltaic) to guaranteed savings on energy consumption (energy efficiency) and energy services (energy purchase, consumption monitoring, and energy strategy consulting).

The energy efficiency solutions proposed by GreenYellow, such as the Energy Performance Contract (EPC / ESCO model), have many advantages. More than simply reducing onsite energy consumption, energy savings levels are contractually guaranteed and come with 24/7 service. Last but not least, GreenYellow pays for all the works and investments while sharing the profits with its customers from day one.

GREENYELLOW IN A NUTSHELL • + 1000 EPCs deployed worldwide • 1 15 solar plants developed, constructed and operated • + 180M€ of energy purchased annually MADAGASCAR IN GREENYELLOW COLORS GreenYellow has been pioneering in solar energy in the Indian Ocean since 2008 by constructing the first parking shelters for the Jumbo Score retail stores in Reunion Island. Banking on this success and keeping a close eye on the local energy challenges, the energy operator decided in 2015 to open two new regional offices, one in Mauritius and the other in Reunion Island. Within two years the local teams have grown to include now close to 15 professionals. More recently, a third office was opened in Antananarivo, the capital of Madagascar.

GreenYellow, the Malagasy State and JiRaMa (the national power utility company) intend to support the national energy transition by promoting renewable energy. All three are resolutely engaged in the construction of what will become the largest photovoltaic power plant in the Indian Ocean (20 MWp).

This “Presidential Project” is exemplary in many ways.

It was born of a fruitful association of Malagasy and French companies that worked together throughout the

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Madagascar | GreenYellow

production costs and environmental disturbances, while ensuring round-the-clock electricity supplies.

GreenYellow is anxious to collaborate further with the Malagasy State in diversifying the energy mix through actions in the regions where the need to develop energy is the greatest.

project, from looking for suitable land and performing technical studies, to construction and the exploitation phase. To this effect, a 25-year Electricity Purchasing Contract has been signed with JiRaMa. ////// KEY FIGURES - Power output: 20 MWp - Land area: 28 ha - Number of photovoltaic panels: 73,728 - Annual energy production: 32 GWh

FROM MADAGASCAR TO CONTINENTAL AFRICA GreenYellow is growing on continental Africa with new offices in Dakar (Senegal) and Rabat (Morocco).

Their partnership model, their holistic approach to energy matters, and their capacity for dedicated funding are essential ingredients for the development of new projects needed on the African continent, in both French-speaking countries such as Djibouti, Cameroon, and Burkina Faso, and English-speaking countries such as Ghana, and countries in East Africa, etc.

The photovoltaic power plant will start producing in mid-2018 leaving a total development period of less than 24 months since the initial contacts. This is a very short period of time according to international standards. And GreenYellow can be proud that it rallied the support of the political and administrative leaders at all relevant levels: the Presidency of the Republic, the Ministry to the Presidency in charge of Presidential Projects and Land Development, the Ministry of Energy, Water and Hydrocarbons, the Vakinankaratra region, JiRaMa, ORE and EDBM. GreenYellow also developed an offer for hybrid photovoltaic/thermal electricity production especially suited to the many small electricity grids (private mini-grids, provincial public grids) thus reducing electricity

doingbusinessin Madagascar | 2017 Edition

SOARING ICTs* Madagascar has acquired quality tools that contribute to ICT development. Many call centers are located on the Grande Île but its future seems more amenable to creative, competing start-ups.

INFRASTRUCTURE AT THE CUTTING EDGE OF THE NEW TECHNOLOGIES For some years, very high speed international communication networks composed of optic fiber cables and radio relay links have been available in the country: •L ION (Lower Indian Ocean Network) is a 1000 km submarine communications cable system with a delivery capacity of 1.3 terabits per second that connects Madagascar to Reunion Island, Mauritius and the rest of the world. It extends from Madagascar to Mombasa in Kenya, with a LION2 connection via Mayotte, which secures the very high speed Internet connection (4G) of close to 2700 km.

•E ASSy (East Africa Submarine System) is an undersea cable system that connects nine African countries (Madagascar, South Africa, Mozambique, Tanzania, Kenya, Somalia, Djibouti, Eritrea, and Sudan) and interconnects them to the global underwater cables network which has a capacity of 1.4 Tbps and is more than 10,000 km long.

These two international networks are linked to the national ‘backbone’, an 8000 km fiber optic cable that serves the whole country.

*information & communication technologies

doingbusinessin Madagascar | 2017 Edition

THE DEVELOPMENT OF MOBILE PHONES AND INTERNET ACCESS According to EDBM, the current low penetration rate for telephones (50.47%) and Internet (5.42%) is an indication of a bullish local market. Madagascar like many African countries is wild about new generation telecommunications with offers of mobile telephone services as varied as e-money offers.

Examples of this type of companies in Madagascar: Telecom Malagasy (which includes Telma mobile, Telma global net), Orange Madagascar, Airtel Madagascar, Gulfsat Madagascar/Blueline, Iridium Africa Services Corporation, CTMM (Centre de Traitements MonĂŠtiques de Madagascar), Global Plus and Via Space Madagascar. So plural an offer makes prices competitive.

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A COMPETENT AND COMPETITIVE LABOR FORCE Madagascar has a young, competent, qualified, dynamic, creative labor force. Each year close to 36,000 students obtain their Baccalaureate degree in the capital city. Most of them have studied in French. Each year engineers are educated in the prestigious polytechnique schools and the university. The Ministry of Higher Education and Scientific Research has reported that more than 200 graduates in telecommunications and computer sciences enter the labor market every year. These valuable professionals are well qualified and moreover are competitive in cost to the professionals in other countries. In the call centers, the minimum salary is US$200 a month. The result is that mobile telephone services formerly provided from Morocco or Tunisia have been transferred to Madagascar.

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Soaring ICTs

|||||||| Statistics on young people enrolled THE CALL CENTER BOOM Most Business Process Outsourcing (BPO) involves in the Antananarivo universities call centers. Since 2005 and especially during the 30,000 last three years more than 85 companies have invested in this market, including the world leader 20,000 Teleperformance (installed in 2016) that works alongside CCA International, EazyCo, Webhelp, Outremer Telecom just to name a few.

10,000 0

1st year

2nd year

3rd year

4rd year

5rd year

Antananarivo private institutes Antananarivo semi-public and semi-private universities Antananarivo universities

|||||||| Number of call centers created between 2005 and September 2015 25 20

Source: EDBM statistics include young people from all sectors except medicine, natural sciences, and agronomy. Altogether, close to 50,000 students are willing to combine their studies and employment if their time schedule can be somewhat flexible.

15 10 5

20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15

0 Source EDBM

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Soaring ICTs

THE MALAGASY E-REVOLUTION Activities requiring vanguard technology have been developed, e.g. website creation, software and mobile applications, as well as data processing of various kinds. Digital services have also made inroads, e.g. in accounting and telemedicine.

Several fields of activity are being or could be developed by both local and foreign operators: • t echnology parks, • f actories to make or assemble electronic components, • f actories to assemble computers and telecommunications equipment, •d evelopment units for high added-value mobile applications, • s ervices to integrate high tech solutions, • t ele-service companies (call centers, telemarketing, tele-entries, etc.), • s ubsidiaries of the world’s leading multinational consulting firms, • t raining centers authorized to certify technologies and international standards in the development of applications, information system audits, security audits, project management, etc.

With its 200 graduates in engineering every year, Madagascar could become a greenhouse for start ups. For the last few years, EDBM has noted the high demand for local developers who are recognized for their talents and creativeness.

The most popular Malagasy start up is the internationally reputed Lomay Technology which created the first 100% Malagasy video game, called Gazkar (a 3D racing game). This gameplay made its debut in 2014. Lomay is specialized in the development of web and cell phone applications (Android and iOS) and in modeling animated 3D objects. Besides developing games, by the end of the year Lomay intends to publish applications on productivity that will draw on cutting edge technology like artificial intelligence. According to the co-founders of Lomay Technology, Mathieu Rabehaja and Tsilavina Razafinirina, “Madagascar has many of the qualities needed to become a greenhouse for start ups. One of its strengths is that the country not only has a very young population that is greatly interested in NICTs, but that access to internet has become much easier over the last few years. And what could contribute more to bringing in the innovation needed to create the start ups of tomorrow than young talented minds that have access to the infinite amount of knowledge flowing on the Internet?”

In the long term, and considering all the potentials of the country, the aim of the Ministry of Post, Telecommunications and Digital Development is to turn Madagascar into the strategic technological hub of the Indian Ocean

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FCCIM

THE POWER OF A NATIONAL NETWORK TO BOOST THE PRIVATE SECTOR The Federation of Chambers of Commerce and Industry of Madagascar (FCCIM) works as a professional public enterprise throughout the country. Its purpose is to represent and develop the interests of groups of officially established business companies within the regional Chambers of Commerce and Industry (CCI).

The FCCIM represents its 24 member CCIs at the national, regional and international levels. Its main activities include facilitation, strengthening the CCI networks, supporting the CCI in their institutional development and in their enterprise-support work.

Yet, the local economic operators are still not familiar with these activities.

This year is an important, historical year for FCCIM/ CCI since it is the first time in two years that the top directors of SMEs and the major companies have met and worked together to organize elections to selected their new consular officers. This consultative meeting was organized by the Ministry of Commerce and Consumption and is an opportunity to restore legitimacy to the representatives of FCCIM/CCI. The FCCIM, together with the Ministry of Trade and Consumption, felt that it was also necessary to organize post-electoral training for the newly elected officers in order to take advantage of their outlooks and make the most of their role and missions in relation to the “national” members.

The outcome of this election is fundamental for the FCCIM/CCI since it is expected to give new life to its activities, and increase its impact on the Malagasy economic scene and at the international level and serve as a relay to facilitate contributions to inclusive local, national and international economic development.

Félicité MANANJARA Director General, FCCIM

Lot IVR 42 Espace Conquête Antanimena-Antananarivi (101)- MADAGASCAR Tel: +261 20 22 213 22 E-mail: federationcci@gmail.com

doingbusinessin Madagascar | 2017 Edition

Interview

MAHAZAVA LAUNCHES A SOLAR HOME KIT LEASING SYSTEM In 2017, a start-up that designed a solar home kit together with an innovative payment system received the Qwant Public Award for the African Start-up of the Year.

What gave you the idea to create a solar home kit?

Everything started when I realized to my alarm that 85% of the population in Madagascar did not have access to electricity.

In the rural areas the figure is closer to 95%, unquestionably one of the lowest rural electrification rates in the world. This is what led to the birth of our solar home kit: an energy-based solution to replace candles and oil lamps that emit deadly gases. Our kit can be used as a source of light, to charge a telephone or even a portable computer at home, without causing any collateral damage.

What is your comparative advantage over other solar home kits that are already available on the market?

Our financial approach is still the most “disruptive” feature compared to what is already on the market in Madagascar. It is based on the fact that for our target clientele to have to pay for the solar home kit in a single payment is a barrier to purchasing it.

When we realized this, our goal became to enable the customer to use the solar home kit and equipment, and slowly buy it by making regular small payments (around 0.25 cents a

We also want to distinguish ourselves on the technological level by emphasizing R&D. The components of our kit are based on vanguard technology and have been designed to last, unlike the products currently available on the market.

What are your medium- and long-term growth targets?

We are going through a pilot phase in various regions of Madagascar. Since obtaining the Qwant Award we have been contacted by several investment funds and business angels.

The first fundraising activity will enable us to consolidate our financial base and start a large-scale marketing phase in order to finetune our assembly and distribution process in a country that has practically no infrastructure. By the year 2023, – considering the challenges ahead, – we hope to have distributed 500,000 solar home kits that will directly benefit 2.5 million people. There are other attractive markets, but Madagascar is still our number one priority.

The kit is composed of: • one 50w solar panel; • 4 high-quality LED light bulbs; • 1 universal phone charger; • an aluminum control box containing a latest generation LiFePO4 battery (easy to recycle); • an integrated GSM module; • 1 TV LED with an integrated DTT decoder (optional).

- Autonomy: 8 hours if the battery is used to the full and up to 50 hours if minimal use.

- Recharge time: 4 hours.

doingbusinessin Madagascar | 2017 Edition

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Mahazava «that gives light» Christian RANDRIAM, Founder

day). The customer pays for the solar equipment by buying energy credits through remote payments made via one of three mobile money operators in the country. Energy credits allow the customer to use the apparatus for a given period of time (pre-paid) and own it after a payment period that can last up to four years, depending on the buyer’s financial capacity.

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Interview | MAHAZAVA

Integrated, well-designed transportation infrastructure, a major challenge for the Malagasy government, requiring the renovation, adaptation and modernization of the productive capital services sector.

Construction

of infrastructure for ilmenite sand mining in Fort Dauphin

DEVELOPING THE ROAD SYSTEM, A MAJOR CHALLENGE For financial reasons, road transport is still the most commonly used transport system. According to EDBM, there are approximately 32,000 kilometers of roads, including 11,862 km of national roads (RN), 12,250 km of provincial roads and 7,500 km of country roads. Considering the size of the country, the road density is very low. Furthermore the roads are in poor condition. There are many areas that are difficult to reach, especially during the rainy season. Only 12,000 km (slightly over one-third) are all-weather roads, and 4,074 km (a little more than 10%) are paved. Poor maintenance, combined with damage from tropical storms and hurricanes, and chronic under-investment caused

an average road loss of between 300 and 1000 km per year between 1970 and 2000. The 2009-2013 crisis further aggravated the situation.

The same assessments were made for the rail, sea and air transport sectors.

DEVELOPMENT OF APPROPRIATE, INTEGRATED STRATEGIES AS PART OF THE NEW ECONOMIC TAKE-OFF “Manager, an Administration serving the public interest by promoting a reliable, safe, efficient, environmentally-friendly transportation network and by joining the sustainable development policy” In compliance with state policy (PGE) and the National Development Plan’s implementation plan (PND – PMO), the government that was elected in

doingbusinessin Madagascar | 2017 Edition

© COLAS - Patrick Cottrelle

INFRASTRUCTURE, LEVERS OF GROWTH

FUNDING The Ministry of Public Works (MTP) has drawn up a 4-year road investment program valued at US $2 billion, i.e. 3% of GDP. In December 2016, the Conference of International Donors pledged to allocate US$676 million to this sector, of which 573 million will be used for road rehabilitation, 22 million for road and bridge construction, and 81 million for intersectoral connections. The law on public-private partnerships was adopted in February 2016 to complement the program and accommodate funding requirements by offering more possibilities to develop funding strategies.

The various sources of funding are managed by the Fonds d’entretien routier (FER, the road maintenance fund) which allocates funds according to a forecast schedule.

PRESENTATION OF A FEW PROJECTS •R ehabilitation of three types of infrastructure on the east coast The plan is to rehabilitate the Fianarantsoa Côte Est railway, the Pangalanes canal and the Manakara Port to open up a hinterland with great economic potential and facilitate the transportation of cash crops such as cloves, pepper, coffee and other spices, as well as fruits such as lychee, oranges, banana that are abundant in this region.

|||||||| Construction sites 2017

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2013 decided to prioritize this cross-cutting sector to support integrated development. The goal is to increase the capacity to handle traffic throughout the country, regardless of season, and to stimulate the economic platforms by offering high quality infrastructure to meet the requirements of the export market. According to the Director General of Infrastructures and Presidential Projects, a quantified, step-by-step plan has been adopted. The purpose is to renovate the existing roads between the provincial capitals, and to open up regions with high potential and thereby make their outputs more profitable.

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Infrastructure, levers of growth

Antsiranana

EUROPEAN UNION - BEI 145 000 000 €

N6N

N5A

N5A

BADEA - FSD - FKDEA - OFID ABU DHABI FUND 71 440 000 €

Sambava

N6S

Mahajanga

N5A

N31

Antsohihy

N32

N6S N4 N5

N19

Maevatanana N8C

N1BIS

Fenoarivo N33 N44 Ambatondrazaka Toamasina N44 N2 ANTANANARIVO

N4

N1BIS

Maintirano

N36

N8A

Tsiroanomandidy

Miarinarivo N1BIS

N21

N3A

N11A

N43

N8 N34 N7

N35

Morondava

BADEA - FSDA 25 560 000 €

Antsirabe

N35

Ambositra

N11

N25

Fianarantsoa N7

Manakara

Ihosy N27

N9

N12

Farafangana

Toliara N13 N10

12A

BAD - OFID 1 987 502 831 Ariary Pont de Mangoky EUROPEAN UNION - BEI 56 000 000 €

ZOOM ON ANTANANARIVO ///////////////////////////////////////////////////////////////////////// RN4 - BEI 2 769 495 € Route d’Itaosy - BEI 3 514 665 €

RN3 - BEI 3 103 993 € Rocade Nord Est - AFD 38 000 000 €

Bretelle Itaosy - BEI 3 461 535 € RN1 - BEI 3 096 229 €

Rocade Est - AFD 38 000 000 € RN2 - BEI 3 291 551 € RN7- AFD 4 142 411 €

doingbusinessin Madagascar | 2017 Edition

Infrastructure, levers of growth

Hundreds of village people should benefit from this project and enjoy easier traveling conditions.

•P lans to rehabilitate the ports Madagascar has 17 ports, 6 of which are open to international traffic: Antsiranana, Toamasina, Ehoala, Tuléar, Mahajanga, and Nosy-be. Some will be affected by the extension projects since most cargo containerization is handled through the seaports.

•E xtension of the Toamasina Port, partnering with JICA (Japanese International Cooperation Agency) - Construction of a new storage area for containers,- 345 m breakwater extension, - Construction of a new quay 325 m long to moor deepwater ships – 14 m depth, - Deepening the existing quays down to 14 m, - Construction of new roads for bulk carriers and a road for the trucks entering the port, - Installation of new equipment.

The volume of standard cargo transiting through the Toamasina port should be close to a million tons in 2020, according to EDBM estimates.

• Th e Ehoala port project: constructing a hub in the Indian Ocean Ehoala Park is one of the first industrial parks in Madagascar. It was built through a public-private partnership composed of Rio Tinto and its subsidiary, the Port d’Ehoala SA on the one hand, and Agence Portuaire, Maritime et Fluviale de Madagascar (APMF) and the Pôles Intégrés de Croissance (PIC) project on the other.

This +400 ha area was awarded as a concession

by APMF to Port d’Ehoala SA for a period of 40 years and is designed to receive private, local and international operators.

Ehoala Park has unique appeal for the following reasons: - The Ehoala Park which is next to the Ehoala Port, the second deepest port in the Indian Ocean, has modern infrastructure and equipment, is certified ISO 9001 (quality) and ISO 14001 (environment), and meets the ISPS (International Ship and Port Security) safety standards.

- The Ehoala Port is located on one of the main international maritime routes and is slated to become one of the primary hubs in the Indian Ocean region. The timing is good since most of the regional ports are relatively saturated.

- The Ehoala Park is located 10 minutes away from the Fort Dauphin international airport, hence in the middle of a air-sea logistical platform.

- The hinterland of Fort Dauphin is enormously rich in largely unexploited natural resources for agriculture, fishery, livestock production, mining, and tourism.

•C ompliance with international airport standards Madagascar has 44 airports. Renovation work started officially at the Ivato and Nosy Be-Fascène airports in June 2017, managed by the Ravinala Airports consortium.

• I vato The first step, – which was completed in time to receive the Francophony Summit in November 2016, – involved the extension of the runway by several hundred meters to allow large aircraft such as the Airbus A-380 to land. New buildings will be constructed on a land area of 17,500 m² to receive up to 1.5 million passengers per year. The work should be completed by mid-2019.

•N osy Be-Fascène For the Nosy Be-Fascène airport, the terminals will be remodeled and the runway reinforced. A wastewater purification station will be constructed and the waste treatment incinerators will be upgraded to meet international standards

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xxxxxxxx

PORT D’EHOALA: DEVELOPMENT CENTER OF MADAGASCAR’S SOUTHERN REGION The Ehoala port was officially opened in July 2009 to replace the Port of Tolagnaro.

Within two years the port was able to double its maritime traffic throughput capacity.

A UNIQUE STRATEGIC POSITION More than 20, 000 ships pass near the Fort-Dauphin coast every year. The Deepwater port d’Ehoala links the SADC countries to Asia and offers unique conditions.

Madagascar, the fourth biggest island in the word, is located 400Km from the African coast, and Fort-Dauphin is 900 nautical miles from Durban.

The Anosy Region, where the port is located, has a land area of 26, 000Km2 that is suitable for agriculture and has many tourist attractions such as the humpback whales dance from July to September.

THE MAIN ADVANTAGES: Water and electricity supply: -Near the airport -Bonded zone -Bonded to develop transshipment for the whole island and for southern Africa -Local production could be processed in the port area (processing/ transformation industry) -Support service for export: freight forwarders and service provides ANOSY REGION WEALTH -Fisheries (Fishery and aquaculture) -Livestock production (sheep, cattle, goats, pigs, poultry) -Tourist attractions and unique biodiversity unique in the word -Export, a sector to be developed (lychees, pink peppercorns, cocoa, cloves, medicinal plants, forestry product, etc.…)

The Fort-Dauphin area is a fast-developing, dynamic zone where the QMM project, the deepwater Port d’Ehoala and the development of tourism are LARGE HANDLING CAPACITY turning the region into a strategic consumer and The Port area has a privately managed 400ha area industrial hub capable of pulling the economy of the available for port and industrial development. southern of county in its wake. doingbusinessin Madagascar | 2017part Edition

TOURISM: THE ISLAND OF TREASURES The Malagasy authorities are determined to promote the nation’s natural resources and tourism.

MADAGASCAR: AN EMOTIONAL EXPERIENCE Madagascar has exceptional appeal for tourists.

A coastline of 5000 km hiding immense lagoons and carpeted with white sand beaches, untouched coves, sweeping mangroves that offset the majestic vertical bearings of the avenues of baobabs (the most diverse assortment in the world). Inland, from north to south mountain ranges and volcanic massifs give way to granitic plateau and the savannah landscape.

The Nosy Be islands off the north coast and the Nosy Boraha islands to the east are first choice for beach lovers. Nosy Borah is especially attractive to scuba divers.

Amphibians Reptiles Birds Mammals Invertebrates

Number of species identified 179 363 266 140 868

Beach resort areas are the perfect place for taking leisurely decisions to do nothing, surf, sail, or take walks and enjoy the nearby national parks and protected areas. Ecotourism, for extremely convincing reasons, is becoming increasingly popular. On the Grande Île 89% of the plants (baobabs, orchids, cactus, etc.) and 92% of the mammal species are endemic. Madagascar is the only place with an endemic population of lemurs, small monkeys with long tails, the heroes in the computer-animated film “Madagascar” directed by Eric Darnell and Tom McGrath. The World Bank and the GEF classify Madagascar as the top country in terms of biodiversity.

Number of endemic species 176 326 135 135 864

Source: Ministry of Environment, Ecology and Forests

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Level of endemicity (%) 98 90 50 97 99.5

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Tourism: the island of treasures

The Tsingy de Bemaraha Strict Nature Reserve (1990). The relief of this reserve is marked by a forest of limestone needles, the spectacular canyon of the Manambolo River, rolling hills and high peaks.

And then there is: • the second largest coral reef in the world • a unique place to watch the dance of athe humpback whales (July-September) The earliest history of Madagascar has been marked by massive migratory flows, leading to a mixture of peoples that can be recognized by their cooking, so rich in spices and flavors, and their music, known for its diversity: traditional music, jazz, blues, variety, etc. To honor this musical wealth, Cesar Paes has made a film, Songs of Madagascar, which was released in June 2017.

The arts and crafts of Madagascar can tempt tourists with tableclothes, embroidery, wickerwork, woodwork, silk and jewelry made of zebu horn.

|||||||| Tourists at the Malagasy border and related revenue Tourists 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 -

Revenue 800 700 600 500 400 300 200 100 -

Number of tourists Revenue (in millions of dollars)

doingbusinessin Madagascar | 2017 Edition

Source: Ministry of Tourism

• Two ecosystem sites, also on the UNESCO World Heritage lists The Rainforests of the Atsinanana (2007) are composed of six national parks scattered along the eastern fringes of the island.

MORE AND MORE POPULAR “Magic”, “magnificent”, “awesome”, these are the adjectives most often heard from tourists who describe their trip to Madagascar. The country is gaining international standing. Forecasts for the 2017 high season are optimistic. According to some tourism organizers, the hotels in the main hotspots are sold out. Since 2014, numbers have been rising as seen by the 20% increase in 2016: 293,000 tourists, with tourism revenue reaching US $748,000,000. The upward trend should continue in 2017.

20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15

MADAGASCAR IS ALSO: • A cultural site classified as a UNESCO World Heritage Center The Royal Hill of Ambohimanga (2001) consists of a royal city, a burial site, and a combination of sacred places. It is associated with strong feelings of national identity, and has maintained its spiritual and sacred character both in ritual practices and the popular imagination for the past 500 years. It remains a place of worship to which pilgrims come from all over Madagascar and elsewhere.

Tourism: the island of treasures

GOVERNMENT STRATEGY: DIVERSIFY THE OFFER Madagascar, geographically close to Reunion Island, Mauritius and the Seychelles and reputed for its high quality vanilla, has joined the tourism circuit of the “vanilla islands” where cruise ships land.

Furthermore, thanks to the development of inland airlines, tourists may be tempted to extend their trip and enjoy the wondrous sites of Madagascar.

TOURISM NEEDS INFRASTRUCTURE The aim of the Ministry of Tourism is to be able to receive 500,000 foreign visitors a year by the year 2019. This will require the construction of an additional 10,000 rooms that meet international

standards and consequently more investments.

EDBM, as the mediator and facilitator, is considering a type of collaboration between local and foreign operators to make up for a lack of provisions on access to land ownership for foreigners, a private-private partnership that will also protect investments. For instance, as a result of two collaborative efforts, – Andilana (Spain) and Filatex (Madagascar) groups, and Rajabali (Madagascar) and Accor (France) groups, – hotels were built and opened in Antananarivo. The interest expressed by the internationally reputed large hotel groups during the International Tourism Fair on the Grande Île last June confirms the appeal of Madagascar as a tourism destination. More partnerships are expected to develop

doingbusinessin Madagascar | 2017 Edition

174 Rooms 12 Superiors 24 Twins Restaurant 24/24 Pool Spa Gym Meeting Rooms High Speed Wifi Shopping Mall Safe Car Park

BP 529 - Route des hydrocarbures Ankorondrano - 101 Antananarivo Madagascar Phone: +261 32 23 555 55 - Fax:+261 20 23 555 56 E-mail: H6857-RE@accor.com www.ibishotel.com

200,000 jobs within the next five years. President Rajaonarimampianina stated: “We have reached one-fourth of our goal, but we need to move faster.

Madagascar is definitively committed to promoting investments in the textile sector to create wealth and employment.”

REVIVAL OF THE TEXTILE INDUSTRY After a downhill period during the political crisis, the Malagasy textile industry is growing again, with more orders and jobs and more contribution to the GDP. A SECTOR BLOOMING AGAIN The national and international situations are very propitious to the development of the textile industry. With the return of constitutional order, the country was able to rejoin the AGOA (African Growth & Opportunity Act) program, a preferential trade agreement that facilitates African exports to the United States, which aims to become the leading importer of Malagasy fabrics. After the dark years (2009-2014) when close to a hundred textile-exporting companies were closed causing the loss of tens of thousands of jobs, the situation has improved with more than 35,000 jobs being created or reinstated in 2016 and, according to forecasts, the sector should be creating another

This upturn is also the result of a reclassification of China, the world’s leading textile producer that is now focusing on its domestic market. Moreover, Chinese products are becoming less competitive as wages increase in that country. “This year (2016) we succeeded in penetrating the American market and our order books are fuller than ever.… Prospects are very good because China is no longer very competitive in this field, and everyone is turning to Madagascar,” said Frédéric Wybo, Director General of Ultramaille.

TEXTILE CITY: AN AMBITIOUS, UP-AND-COMING PROJECT Early in November 2016, the 7th “Origin Africa” apparels and textile show was held for major African textile companies, which President Rajaonarimampianina addressed to tell about the plans for Textile City, a Special Economic Zone (SEZ) for the textile industry. This area will be earmarked for the development of 80 to 100 enterprises, from large to small, in a Textile/Apparel cluster and will offer related and support services. It will be designed to meet international standards and will be located near the main transportation and expedition facilities (national road 44, the new Antananarivo-Toamasina freeway, the railroad, new airports, the Toamasina port, etc.)

TAX ARRANGEMENTS The Free Zones and Enterprises Law (Zones et Entreprises franches ZEF) applies to light industry. In the case of the textile industry located in a Special Economic Zone (SEZ) the comparative advantages should be even greater. The slate of laws is still being negotiated; the new code should be published before the end of 2017.

doingbusinessin Madagascar | 2017 Edition

Fully fashioned knitwear on traditional hand flat knitting machines from 1.5GG to 16GG

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Accord Knits SA is engaged in the design, creation, knitting, manufacturing and export of knitwear.

Accord Knits knitwear is made of natural fibers, from 100% cashmere, to 100% cotton, 100% wool and various blends.

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PRACTICAL INFORMATION Your first steps in Madagascar >>> Acronyms >>>

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YOUR FIRST STEPS IN MADAGASCAR FINDING A PLACE TO LIVE Before settling in, consult the expatriates platform which provides practical information, tells about people’s experiences and should answer all your questions. http://www.expat.com/fr/guide/afrique/madagascar On a business trip or looking around before moving, you’ve been advised to go to the hotel. The link http://www.hotels-restaurants-madagascar. com/annuaire-des-hotels/ will help you find and reserve a room.

SHORT TERM STAY OR MOVING IN PERMANENTLY? Real estate prices are attractive, and there are many types of rentals available. Real estate agencies can help you look.

You can also consult the ads on the following sites: Moov: www.moov.mg Sobika: www.sobika.com Orange: www.orange.mg COST OF LIVING The cost of living is very low in Madagascar. The following table gives a general idea:

Average prices

High season and upscale prices

400 €

550 €

20 €

30 €

Food per day / person

8€

12 €

Activities, one-day visits / person

4€

8€

Estimate per person.

Car rental for a week with fuel or the equivalent of 400 km by taxi 2 or 3 star accommodation, per day/person

The high budget is applicable during peak season or for upscale services

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Your first steps in Madagasca

CHANGE In November 2004 the Malagasy franc was replaced by the Ariary. The exchange rate often fluctuates: 3,740 Ariary 3,190 Ariary 4,190 Ariary 3,250 Ariary 230 Ariary 480 Ariary © Source Bernard GAGNON

Euro (EUR €) U.S. dollar (USD $) British pound (GBP £) Swiss franc (CHF) South African Rand (ZAR) Chinese Yan (CNY) Exchange rates in oct 2017

SCHOOLS AND SCHOOLING The REFM (Réseau d’établissement à programme d’enseignement français) a network of schools teaching the French curriculum provides a list of French schools abroad approved by the French Ministry of National Education. For more information on accredited schools teaching in French, see: https://mg.ambafrance.org A list of approved Malagasy partner schools throughout the country is also available. There is also the American School of Antananarivo, director@asamadagascar.org +261 202 242 039 and the British School of Madagascar (BSM) britishschool. mg@gmail.com +261 331 555 559 / +261 344 321 117 in Antananarivo. + info: www.diplomatie.gov.mg www.diplomatie.gouv.fr

HOSPITALS Avenue de The website HospitalBy (http://www.hospitalby. l’Indépendance fr/hopital-madagascar/) gives a list of the hospitals so that you can find the one closest to where you live. Regular medical care is available for long-term illnesses. In case of an emergency, there are two possibilities: a private clinic in Madagascar or a specialized hospital in Reunion Island, Mauritius Island, or France.

In an emergency: • DIEGO SUAREZ : Military hospital: + 261 34 14 586 41/42 + 261 34 14 586 45 (admissions) + 261 34 15 586 51 • TAMATAVE : Hospital : + 261 20 53 320 18 / + 261 20 53 320 21 • A NTANANARIVO : Soavinandrimo hospital (military hospital): + 261 20 23 397 51

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Your first steps in Madagasca

CLIMATE The geography of Madagascar explains the country’s great variation in climate. There are usually two seasons: a very hot rainy season from November to April and a cooler, dry season from May to October.

RELIGION Christianism and ancestor worship are the main religions. A small part of the population is Moslem. There are also some Buddhists. Daily life is conditioned by many taboos (fady), especially in the coastal areas.

HOLIDAYS • J anuary 1st, •E aster Monday, •M arch 29th (commemoration of the martyrs of the 1947 uprising), •M ay 1st, Ascension Day, •W hit Monday, • J une 26th (Independence Day), •A ugust 15th, •N ovember 1st, •D ecember 25th.

CULTURAL LIFE The Institut français is greatly appreciated for its artistic, scientific, literary and intellectual events: live shows, cinema, plastic and visual arts, lectures and debates, meetings with scientists, etc. The activities program is online at http://www.institutfrancais-madagascar.com/ If you’re looking for English language contacts, the American Center invites you to come and learn about the American culture. The public is welcome to the Center’s big media library, well-equipped IT center and auditorium. For more information: www.facebook.com/americancenter.mg/ More practical information • E lectricity: 220 volts 50 HZ Continental European plugs • Time zone: GMT + 3 •C ountry code: + 261 • I nternet country code: mg •O fficial languages: Malagasy.

French is the main language for business

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AfDB

African Development Bank

AGOA

African Growth & Opportunity Act (US)

API

Agence de Promotion des Investissements

APMF

Agence Portuaire, Maritime et Fluviale de Madagascar

AU

African Union

BCMM

Bureau du Cadastre Minier de Madagascar / Mining Registry Office of Madagascar

BFM

Banky Foiben’i Madagasikara / Central Bank of Madagascar

BIC

Bureau d’information sur le crédit / Credit information bureau

BPO

Business Process Outsourcing

BTP

Bâtiments et Travaux Publics / (construction and public works)

CBMT

Cadre Budgétaire à Moyen Terme / (medium-term budgetary framework)

CCI

Chamber of Commerce and Industry

CdR

Centrale des Risques / Risk Management Unit

CEAM

Comité des Entreprises d’Assurances à Madagascar / Committee of Insurance Companies in Madagascar

CMM

Chambre des Mines de Madgascar

COMESA Common Market for Eastern and Southern Africa CRB

Centrale des Risques Bancaires / Banking Risk Management Unit

CRM

Centrale des Risques de la Microfinance / Microfinancing Risk Management Unit

CSBF

Comité de la Supervision Bancaire et Financière / Banks and Finances Supervision Commission

DGD

Direction Générale des Douanes / Directorate General of Customs

DGI

Direction Générale des Impôts / Directorate General of Taxes

DIC

Donors and Investors Conference

DFI

Direct Foreign Investment

EAC

East African Community

EB

Executive Board

ECF

Extended Credit Facility (IMF)

EDBM

Economic Development Board of Madagascar

EIS

Environmental Impact Study

EU

European Union

FCCIM

Fédération des Chambres de Commerce et d’Industrie de Madagascar / Federation of Chambers of Commerce and Industry of Madagascar

EEZ

Zone économique Exclusive (ZEE) / Exclusive Economic Zone

EPA

Economic Partnership Agreement

EPIC

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French Development Agency

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AFD

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Agence de Développement de l’Electrification Rurale.

acronyms

ADER

acronyms

EU

European Union

FDI

Foreign Direct Investments

FER

Fonds d’entretien routier / road maintenance fund

FEZ

Zones économiques Franches (ZEF) / Free Economic Zones

FZE

Zones et Entreprises Franches ZEF / Free Zones and Enterprises

GDP

Gross Domestic Product

GEF

Global Environment Facility

GFP

Gestion des Finances Publiques / public financial management

Grande Île

Madagascar

GSP

Politique Générale de l’Etat (PGE) / General State Policy

GU

Guichet Unique / Single window or one-stop shop

GUIDE

Guichet Unique des Investissements et du Développement des Entreprises, (single window or one-stop shop for business investments and development

ICSID

International Centre for Settlement of Investment Disputes (CIRDI)

ICT

Information and Communication Technology

ICTSI

International Container Terminal Services Inc.

ILO

International Labor Organization

IMF

International Monetary Fund

IOC

Indian Ocean Commission

ISPS

International Ship and Port Security

JICA

Japanese International Cooperation Agency

LGIM

Loi sur les grands investissements miniers / law on large mining investments

LIC

Low income countries

LOLF

Loi Organique sur les Lois de Finances / (organic law on the finance law)

MBC

Mining Business Center

MFB

Ministère des Finances et du Budget / Ministry of Finance and Budget

MICTSL

Madagascar International Container Terminal Services Limited

MTP

Ministère des Travaux Publics / Ministry of Public Works

NDP

National Development Plan

NPE

Nouvelle Politique de l’Energie / New Energy Policy

OHADA

Organisation for the Harmonization of Business Law in Africa

OMNIS

Office des Mines Nationales et des Industries Stratégiques / Office of National Mining and Strategic Resources

ONE

Office national de l’environnement

ORE

Office pour la régulation de l’électrification

PAGOSE

Projet d’amélioration de la gouvernance et des opérations du secteur de l’électricité / Governance and Operations in the Electricity Sector Improvement Project

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PRGT

Poverty Reduction and Growth Trust (IMF)

RCF

Rapid Credit Facility

RPP

Programme de Protection des Revenus (PPR) / Revenue Protection Program

RSA

Redevance de sûreté aéroportuaire / (airport safety fee)

SADC

Southern African Development Community

SEZ

Zone Economique Spéciale (ZES) / Special Economic Zone

SME

Small and medium enterprises

SMI

Small and medium industry

SOE

State owned enterprises

SONAPAR Société Nationale de Participations SPAT

Société de Port à Gestion Autonome de Toamasina / (Toamasina port authority)

SSA

Sub-Saharan Africa

TFP

Technical and Financial Partners

TFTA

Tripartite Free Trade Area

TIN

Tax Identification Number

TPP

Tax on Petroleum Products

TVP

VAT on petroleum products

UNCTAD United Nations Conference on Trade and Development UNDP

United Nations Development Program

UNESCO United Nations Educational, Scientific and Cultural Organization US

United States of America (USA)

VAT

Value Added Tax

VSE

Very Small Enterprises

WB

World Bank

WTO

World Trade Organization

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Public-Private Partnerships

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PPP

pages

Plan de mise en œuvre / Implementation Plan

acronyms

PMO

note pad

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Solaire photovoltaïque

Cosmic - Crédits Cosmicphotos - Crédits : DR. photos : DR.

VOTRE PARTENAIRE POUR FAIRE VOTRE PARTE DE LA TRANSITION ÉNERGÉTIQUE DE LA TRANS VOTRE PARTENAIRE VOTRE POUR PARTENAIRE FAIRE VOTRE VOTRE POUR PARTENAI FAIRE PART UNE DELA VALEUR PARTAGÉE. UNE CRÉATI DE LACRÉATION TRANSITION DE ÉNERGÉTIQUE TRANSITION DE LA ÉNERGÉTIQU DE TRANSITIO LA TRAN YOUR PARTNER IN CREATING SHARED UNEVALUE CRÉATION UNE DE VALEUR CRÉATION PARTAGÉE. UNE DE CRÉATION UNE VALEUR CRÉAT PAR D OUT OF ENERGY TRANSITION.

Efficacité énergétique Solaire photovo Cosmic - Photos: DR.

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doingbusinessin Madagascar | Edition 2017

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